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You have been managing a $5 million portfolio that has a beta of 1.25 and a required rate of return of 12%. The current
Posted: Wed Jul 06, 2022 6:41 pm
by answerhappygod
- You Have Been Managing A 5 Million Portfolio That Has A Beta Of 1 25 And A Required Rate Of Return Of 12 The Current 1 (59.2 KiB) Viewed 37 times
You have been managing a $5 million portfolio that has a beta of 1.25 and a required rate of return of 12%. The current risk-free rate is 5.25%. Assume that you receive another $500,000. If you invest the money in a stock with a beta of 1.00, what will be the required return on your $5.5 million portfolio? (At least two decimal places are needed for your calculation) A) 11.88% B) 12.78% C) 13.24% D) 12.24% E) 11.38%