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Your portfolio consists of $22,600 invested in a stock that has a beta-1.7. $65,981 invested in a stock that has a beta = 0.5,
Your portfolio consists of $22,600 invested in a stock that has a beta-1.7. $65,981 invested in a stock that has a beta = 0.5, and $62,155 invested in a stock that has a beta 1.9. The risk-free rate is 2.8%. Last year this portfolio had a required return of 7.3%. This year nothing has changed except that the market risk premium has increased by 4.9%. What is the portfolio's current required rate of return? 13.46% 14.96% 14.46% 15.46% 13.96%
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