(Quantitative Question) Assume that you manage a $10.75 million mutual fund that has a beta of 1.05 and a 9.50% required (expected) return. The risk-free rate is 496. You now receive another $5.7 million, which you invest in stocks with an average beta of 0.65. What is the expected return on the new portfolio?
(Quantitative Question) Assume that you manage a $10.75 million mutual fund that has a beta of 1.05 and a 9.50% required (expected) return. The risk-free rate is 496. You now receive another $5.7 million, which you invest in stocks with an average beta of 0.65. What is the expected return on the new portfolio?
Chapter8: Risk And Rates Of Return
Section: Chapter Questions
Problem 8PROB
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