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Your portfolio is made up of R50 000 invested in a share with a beta of 1,8, R100 000 invested in a share with a
Your portfolio is made up of R50 000 invested in a share with a beta of 1,8, R100 000 invested in a share with a beta of 0,8, and R150 000 invested in a share with a beta of 1,2. The risk-free interest rate is 7%. This portfolio last year had a required rate of return of 13%. This year, nothing has changed except for the fact that the market risk premium has increased by 2 percent (two percentage points). What is the portfolio's current required rate of return? 1. 7,14% 2. 11,45% 3. 15,33% 4. 16,25%
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