QUESTION 3: Tiffany Srivastava has the following investments: a. What is the required...

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Accounting

QUESTION 3:
Tiffany Srivastava has the following investments:
a. What is the required rate of return on the portfolio?
b. What is the portfolio beta?
c. Tiffany has decided to take on some more risk in order to increase her return. She sold some of the
LR and some of the CYCL stocks and invested the proceeds into SCT Limited stock she already
held. If the new portfolio's required return is 14.15% and the new portfolio's beta is 1.38, and she
has $2,000,000 to invest then how much should be her investment in each stock?What is the required rate of return on the portfolio?
b. What is the portfolio beta?
c. Tiffany has decided to take on some more risk in order to increase her return. She sold some of the
LR and some of the CYCL stocks and invested the proceeds into SCT Limited stock she already
held. If the new portfolios required return is 14.15% and the new portfolios beta is 1.38, and she
has $2,000,000 to invest then how much should be her investment in each stock?
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