Risk and Rates of Return; Risk in Portfolio Context holding a partfilio with the following You are investments and betas: Stock A B C D Total Investament Dollar Investment $250,000 150,000 400,000 200,000 $1,000,000 Beta 1.20 1.60 0.85 -0.15 The market's required return is 11% and the risk-free rate is 4%. What is the portfolio's required return? Round decimal places. your answer to three

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter8: Risk And Rates Of Return
Section: Chapter Questions
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Risk and Rates of Return; Risk in Portfolio Context
You
are holding
a
investments and the portfilio with the following
Stock
A
B
C
D
Total Investament
Dollar Investment
$250,000
150,000
400,000
200,000
$1,000,000
Beta
1.20
1.60
0.85
-0.15
The market's required return is 11% and the
risk-free rate is 4%. What is the portfolio's
required return? Round your answer to three
places.
decimal
Transcribed Image Text:Risk and Rates of Return; Risk in Portfolio Context You are holding a investments and the portfilio with the following Stock A B C D Total Investament Dollar Investment $250,000 150,000 400,000 200,000 $1,000,000 Beta 1.20 1.60 0.85 -0.15 The market's required return is 11% and the risk-free rate is 4%. What is the portfolio's required return? Round your answer to three places. decimal
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