Quantitative Problem: You are holding a portfolio with the following investments and betas: Stock A B C D Dollar investment % $200,000 200,000 300,000 300,000 Beta 1.25 1.50 0.80 -0.25 Total investment $1,000,000 The market's required return is 9% and the risk-free rate is 5%. What is the portfolio's required return? Do not round intermediate calculations. Round your answer to three decimal places.
Quantitative Problem: You are holding a portfolio with the following investments and betas: Stock A B C D Dollar investment % $200,000 200,000 300,000 300,000 Beta 1.25 1.50 0.80 -0.25 Total investment $1,000,000 The market's required return is 9% and the risk-free rate is 5%. What is the portfolio's required return? Do not round intermediate calculations. Round your answer to three decimal places.
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter2: Risk And Return: Part I
Section: Chapter Questions
Problem 4P: An analyst has modeled the stock of a company using the Fama-French three-factor model. The market...
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