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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

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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 risk-free rate is 2.25%. What is the portfolio's required rate of return? Do not round your intermediate calculations.

Stock

Amount

Beta

A

725,000

1.95

B

275,000

0.50

C

3,500,000

1.45

D

500,000

0.75

$5,000,000

a.

10.75%

b.

7.95%

c.

9.83%

d.

8.90%

e.

8.02%

Question 11 10 points Save Answe 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 1.95 275,000 0.50 B 3,500,000 C 1.45 500,000 0.75 D $5,000,000 O a. 10.75% O b. 7.95% O c. 9.83% O d. 8.90% O e. 8.02%

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