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Your portfolio consists of $52,092 invested in a stock that has a beta =0.6, $81,478 invested in a stock that has a beta =1.6, and
Your portfolio consists of $52,092 invested in a stock that has a beta =0.6, $81,478 invested in a stock that has a beta =1.6, and $89,608 invested in a stock that has a beta =1.4. The risk-free rate is 1.5%. Last year this portfolio had a required return of 5.2%. This year nothing has changed except that the market risk premium has increased by 4%. What is the portfolio's current required rate of return? 14.35% 13.35% 12.35% 11.35% 10.35%
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