Question: 8. Problem 8.16 (CAPM and Portfolio Return) You have been managing a $5 milion portfolio that has a beta of 1.15 and o required rate

 8. Problem 8.16 (CAPM and Portfolio Return) You have been managing

8. Problem 8.16 (CAPM and Portfolio Return) You have been managing a $5 milion portfolio that has a beta of 1.15 and o required rate of return of 10.325%. 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 1.35, what will be the required return on your $5.5 millio portfolio? Do not round intermediate calculations, Round your answer to two decimal places

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