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uantitative Problem: You are holding a portfolio with the following investments and betas: Dollar investment Beta Stock A B с D $200,000 200,000 300,000 1.20 1.70 0.65 -0.25 300,000 Total investment $1,000,000 The market's required return is 9% and the risk-free rate is 5%. What is the portfolio's required return? Do no three decimal places. %

uantitative Problem: You are holding a portfolio with the following investments and betas: Dollar investment Beta Stock A B с D $200,000 200,000 300,000 1.20 1.70 0.65 -0.25 300,000 Total investment $1,000,000 The market's required return is 9% and the risk-free rate is 5%. What is the portfolio's required return? Do no three decimal places. %

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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Quantitative Problem: You are holding a portfolio with the following investments and betas: Dollar investment Beta Stock A B $200,000 200,000 300,000 300,000 Total investment $1,000,000 The market's required return is 9% and the risk-free rate is 5%. What is the portfolio's required return? Do not three decimal places. с D % 1.20 1.70 0.65 -0.25
Transcribed Image Text:Quantitative Problem: You are holding a portfolio with the following investments and betas: Dollar investment Beta Stock A B $200,000 200,000 300,000 300,000 Total investment $1,000,000 The market's required return is 9% and the risk-free rate is 5%. What is the portfolio's required return? Do not three decimal places. с D % 1.20 1.70 0.65 -0.25
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