Given the following information, determine the beta coefficient for Stock L that is consistent with equilibrium: =
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Question:
Given the following information, determine the beta coefficient for Stock L that is consistent with equilibrium: = 9%; rRF = 3.9%; rM = 11.5%.
Round your answer to two decimal places.
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CAPM AND PORTFOLIO RETURN
You have been managing a $5 million portfolio that has a beta of 0.75 and a required rate of return of 12%. The current risk-free rate is 3.00%. Assume that you receive another $500,000. If you invest the money in a stock with a beta of 1.30, what will be the required return on your $5.5 million portfolio? Do not round intermediate calculations. Round your answer to two decimal places.
Related Book For
Accounting What the Numbers Mean
ISBN: 978-0073527062
9th Edition
Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele,
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