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Your portfolio consists of $52,497 invested in a stock that has a beta =0.8, $66,726 invested in a stock that has a beta =0.5, and
Your portfolio consists of $52,497 invested in a stock that has a beta =0.8, $66,726 invested in a stock that has a beta =0.5, and $61,252 invested in a stock that has a beta =2. The risk-free rate is 3.2%. Last year this portfolio had a required return of 6.7%. This year nothing has changed except that the market risk premium has increased by 2.7%. What is the portfolio's current required rate of return? 9.66%10.66%11.66%12.66%13.66%
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