Question: - Given the following information, determine the beta coefficient for Stock L that is consistent with equilibrium: = 9.5%; rRF = 2.5%; rM = 11.5%.

- Given the following information, determine the beta coefficient for Stock L that is consistent with equilibrium: = 9.5%; rRF = 2.5%; rM = 11.5%.

- You have been managing a $5 million portfolio that has a beta of 1.05 and a required rate of return of 11.925%. The current risk-free rate is 3%. 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 million portfolio?

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