Question: How do I solve this? You have been managing a $5 million portfolio that has a beta of 0.95 and a required rate of return

How do I solve this?

You have been managing a $5 million portfolio that has a beta of 0.95 and a required rate of return of 11.125%. The current risk-free rate is 4%. 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 you answer to two decimal places 4

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