Quantitative Problem: You are holding a portfolio with the following investments and betas: Stock Dollar investment Beta

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Quantitative Problem: You are holding a portfolio with the following investments and betas: Stock Dollar investment Beta

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Quantitative Problem: You are holding aportfolio with the following investments and betas:
Stock
Dollar investment
Beta
A
$300,000
1.15
B
100,000
1.70
C
400,000
0.80
D
200,000
-0.25
Total investment
$1,000,000
The market's required return is 11% and the risk-free rate is5%. What is the portfolio's required return? Do not roundintermediate calculations. Round your answer to three decimalplaces.
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