Mr. Scared, a portfolio manager has a P10 million portfolio, which consist of P1 million invested in 10 separate stocks. The portfolio beta is 1.2. The risk free rate is 5% and the market risk premium is 6%. What is the portfolio’s required rate of return?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Mr. Scared, a portfolio manager has a P10 million portfolio, which consist of P1 million invested in 10 separate stocks. The portfolio beta is 1.2. The risk free rate is 5% and the market risk premium is 6%. What is the portfolio’s required rate of return?

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