A fund manager is holding the following portfolio: $2 million invested in stock A with a beta of 0.6; $3 million invested in stock B with a beta of 1; $1 million invested in stock C with a beta of 1.4; and $4 million invested in stock D with a beta of 1.8. If the risk-free rate is 3%, and the market's required rate of return is 9%, what is the required rate of return for the portfolio?

Answer rating: 100% (QA)

To calculate the required rate of return for the portfolio we need to use the Capital Asset ... View the full answer