You have been managing a $5 million portfolio that has a beta of 1.05 and a required rate of return of 7.775%. The curre

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answerhappygod
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You have been managing a $5 million portfolio that has a beta of 1.05 and a required rate of return of 7.775%. The curre

Post by answerhappygod »

You have been managing a $5 million portfolio that has a beta of1.05 and a required rate of return of 7.775%. The current risk-freerate is 2%. Assume that you receive another $500,000. If you investthe money in a stock with a beta of 0.85, what will be the requiredreturn on your $5.5 million portfolio? Do not round intermediatecalculations. Round your answer to two decimal places.
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