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You have been managing a $5 million portfolio that has a beta of 1.35 and a required rate of return of 8.725%. The current
You have been managing a $5 million portfolio that has a beta of 1.35 and a required rate of return of 8.725%. The current risk-free rate is 4%. Assume that you receive another $500,000. If you invest the money in a stock with a beta of 1.05, what will be the required return on your $5.5 million portfolio? Do not round intermediate calculations. Round your answer to two decimal places. %
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
Concise 6th Edition
324664559, 978-0324664553
