Question
You manage a $20M mutual fund that has a beta of 1.40 and a 10.30% required return. The risk-free rate is 3.30%. You now receive
You manage a $20M mutual fund that has a beta of 1.40 and a 10.30% required return. The risk-free rate is 3.30%. You now receive an additional $5M, which you invest in stocks with an average beta of 0.80. What is the required rate of return on the new portfolio?
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Comparative Public Budgeting
Authors: George M Guess
2nd Edition
1316648109, 978-1316648100
