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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. Amount Beta Stock 725,000 1.00 275,000 0.55 B C 1.35 3,500,000 500,000 0.80 D $5,000,000 a. 7.95% b. 11.20% O c. 9.44% d. 8.49% e. 8.02%
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