You have been managing a $5 million portfolio that has a beta of 1.05 and a required rate of return of 8.725%. The curre

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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 8.725%. The curre

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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 8 725 The Curre 1
You Have Been Managing A 5 Million Portfolio That Has A Beta Of 1 05 And A Required Rate Of Return Of 8 725 The Curre 1 (33.62 KiB) Viewed 37 times
You have been managing a $5 million portfolio that has a beta of 1.05 and a required rate of return of 8.725%. The current risk-free rate is 4%. Assume that you receive another $500,000. If you invest the money in a stock with a beta of 0.85, what will be the required return on your $5.5 million portfolio? Do not round intermediate calculations. Round your answer to two decimal places. %
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