Question: q7 eBook Problem Walk-Through You have been managing a $5 million portfolio that has a beta of 0.85 and a required rate of return of

q7
q7 eBook Problem Walk-Through You have been managing a $5 million portfolio

eBook Problem Walk-Through You have been managing a $5 million portfolio that has a beta of 0.85 and a required rate of return of 10.375%. The current risk-free rate is 19. Assume that you receive another $500,000. If you invest the money in a stock with a beta of 0.55, what will be the required return on your $5.5 millon portfolio? Do not round intermediate calculations, Round your answer to two decimal places % . 4. 16 17

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