You are holding a portfolio with the following investments and betas: Stock Dollar investment Beta A $250,000
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Question:
You are holding a portfolio with the following investments and betas:
Stock | Dollar investment | Beta |
A | $250,000 | 1.3 |
B | 200,000 | 1.7 |
C | 500,000 | 0.85 |
D | 50,000 | -0.35 |
Total investment | 1,000,000 |
The market's required return is 9% and the risk-free rate is 4%. What is the portfolio's required return? Round your answer to 3 decimal places. Do not round intermediate calculations.
Related Book For
Financial Institutions, Markets and Money
ISBN: 978-1119330363
12th edition
Authors: David S. Kidwell, David W. Blackwell, David A. Whidbee, Richard W. Sias
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