Question: Given the following information, determine the beta coefficient for Stock L that is consistent with equilibrium: = 12.5%; r RF = 5.5%; r M =

Given the following information, determine the beta coefficient for Stock L that is consistent with equilibrium: = 12.5%; r_RF = 5.5%; r_M = 8.5%. Round your answer to two decimal places.

You have been managing a $5 million portfolio that has a beta of 1.05 and a required rate of return of 10.775%. The current risk-free rate is 5%. Assume that you receive another $500,000. If you invest the money in a stock with a beta of 1.25, what will be the required return on your $5.5 million portfolio? Do not round intermediate calculations. Round your answer to two decimal places.

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