(b) Mr Ahsan is holding a $100 million portfolio that consists of the following six stocks Stock Amount Invested Beta A $10 million 1 4 B 5 million 1 0 C 18 million 0 8 D 13 million 1 2 E 24 million 0 7 F 30 million 1 3 The portfolio has a required return of 13 percent, and the market risk premium is 5 5 percent Calculate the required return on Stock A, B, C, D, E, and F

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Question: (b) Mr. Ahsan is holding a $100 million portfolio that consists of the following six stocks: Stock Amount Invested Beta A $10 million 1.4 B

(b)Mr. Ahsan is holding a $100 million portfolio that consists of the following six stocks:

Stock

Amount Invested

Beta

$10 million

1.4

5 million

1.0

18 million

0.8

13 million

1.2

24 million

0.7

30 million

1.3

The portfolio has a required return of 13 percent, and the market risk premium is 5.5 percent.Calculate the required return on Stock A, B, C, D, E, and F?

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