Quantitative Problem: You are holding a portfolio with the following investments and betas: Stock Dollar investment Beta A $300,000 1.30 B 150,000 1.70 C 500,000 0.70 D 50,000 -0.20 Total investment $1,000,000 The market's required return is 11% 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 Dollar investment Beta A $300,000 1.30 B 150,000 1.70 C 500,000 0.70 D 50,000 -0.20 Total investment $1,000,000 The market's required return is 11% 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.
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
Section: Chapter Questions
Problem 1PS
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Quantitative Problem: You are holding a portfolio with the following investments and betas:
Stock | Dollar investment | Beta | ||
A | $300,000 | 1.30 | ||
B | 150,000 | 1.70 | ||
C | 500,000 | 0.70 | ||
D | 50,000 | -0.20 | ||
Total investment | $1,000,000 |
The market's required return is 11% 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.
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