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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

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

Essentials Of Investments
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
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**Risk and Rates of Return: Risk in Portfolio Context** You are holding a portfolio with the following investments and betas: | Stock | Dollar Investment | Beta | |-------|-------------------|------| | A | $250,000 | 1.20 | | B | $150,000 | 1.60 | | C | $400,000 | 0.85 | | D | $200,000 | -0.15 | | **Total Investment** | **$1,000,000** | | 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 decimal places.
Transcribed Image Text:**Risk and Rates of Return: Risk in Portfolio Context** You are holding a portfolio with the following investments and betas: | Stock | Dollar Investment | Beta | |-------|-------------------|------| | A | $250,000 | 1.20 | | B | $150,000 | 1.60 | | C | $400,000 | 0.85 | | D | $200,000 | -0.15 | | **Total Investment** | **$1,000,000** | | 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 decimal places.
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The portfolio require return is calculated with the help of CAPM equation

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