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You manage the following $5 million portfolio that contains stocks A through D. The required rate of return on the market is 7.00% and the
You manage the following $5 million portfolio that contains stocks A through D. The required rate of return on the market is 7.00% and the risk-free rate is 2.25%. What is the portfolio's required rate of return? Do not round your intermediate calculations. Stock Amount Beta 725,000 A 1.15 275,000 0.50 3,500,000 1.35 D 500,000 0.75 $5,000,000 a. 8.49% b.11.20% C. 8.02% d.9.83% O e. 10.75%
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