You have been managing a $5 million portfolio that has a beta of 1.25 and a required rate of return of 13.375%. The curr
Posted: Wed Jul 06, 2022 6:44 pm
You have been managing a $5 million portfolio that has a beta of1.25 and a required rate of return of 13.375%. The currentrisk-free rate is 4%. Assume that you receive another $500,000. Ifyou invest the money in a stock with a beta of 1.05, what will bethe required return on your $5.5 million portfolio? Do not roundintermediate calculations. Round your answer to two decimalplaces.