Question: Problem 8.16 (CAPM and Portfolio Return) Cheak My Work (3 remaining) You have been managing a $5 million portfolio that has a beta of 1.05
Problem 8.16 (CAPM and Portfolio Return) Cheak My Work (3 remaining) You have been managing a $5 million portfolio that has a beta of 1.05 and a required rate of return of 9.775%. 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 0.85, what will be the required return on your $5.5 million portfollo?. Do not round intermediate calculations. Round your answer to two decimal places
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