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You manage a $5 million portfolio with a beta of 1.15 and a required rate of return of 11.475%. The current risk-free rate is 4%.

You manage a $5 million portfolio with a beta of 1.15 and a required rate of return of 11.475%. The current risk-free rate is 4%. Let's say you get another $500,000.You invest the money in a stock with a beta of 0.85.

What would be the required return on your $5.5 million portfolio?

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