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Your portfolio consists of $58,792 invested in a stock that has a beta =1.7 $71,686 invested in a stock that has a beta =1.7, and
Your portfolio consists of $58,792 invested in a stock that has a beta =1.7 $71,686 invested in a stock that has a beta =1.7, and $92,104 invested in a stock that has a beta =1.5. The risk-free rate is 4.7%. Last year this portfolio had a required return of 7.4%. This year nothing has changed except that the market risk premium has increased by 2%. What is the portfolio's current required rate of return? 10.63% 11.63% 9.63% 8.63% 7.63%
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