(Please use a math, finance equation and/ or formula. DONT USE A SHEET CHART, EXCEL, OR GRAPH)

10) You have been managing a $2 million portfolio that has a beta of 1.2 and a required rate of return of 14%. The current risk-free rate is 4%. Assume that you receive another 1,000,000. If you invest the money in a stock with a beta of .9, what will be the required rate of return on your portfolio?

11.58%

12.24%

10.88%

13.17%

12.87%