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Your portfolio consists of $80,406 invested in a stock that has a beta = 1.2, $97,421 invested in a stock that has a beta =
Your portfolio consists of $80,406 invested in a stock that has a beta = 1.2, |
$97,421 invested in a stock that has a beta = 0.8, and $99,775 invested in a |
stock that has a beta = 1.5. The risk-free rate is 1.8%. Last year this portfolio had |
a required return of 5.7%. This year nothing has changed except that the market |
risk premium has increased by 4.2%. What is the portfolios current required rate |
of return? |
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