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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 1.15 A 275,000 0.50 B 3,500,000 1.35 500,000 0.75 D $5,000,000 O a. 8.49% O b. 10.75% O c. 11.20% O d. 9.83% O e. 8.02%
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