Question: 7. Problem 8.16 (CAPM and Portfolio Return) You have been managing a 35 million portfolio that has a beta of 1.45 and a required rate
7. Problem 8.16 (CAPM and Portfolio Return) You have been managing a 35 million portfolio that has a beta of 1.45 and a required rate of return of 13.875%, The current risk.free rate is 3%. Assume that you receive ancther $500,000. If you invest the money in a stock with a beta of 1.75, what will be the required return on your $5.5 milion portfolio? Do not round intermediate calculations. Round your answer to two decimal places
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