Question: A money manager is holding the following portfolio: Stock Amount Invested Beta 1 $5mi 0.7 2 6mi 0.6 3 4mi 1.5 4 5mi 2.0 The

A money manager is holding the following portfolio:

Stock

 Amount Invested Beta
1 $5mi 0.7
2 6mi 0.6
3 4mi 1.5
4 5mi 2.0

The risk-free rate is 4 percent and the market's required rate of return is 15 percent. What is the portfolio's required rate of return?

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