your portfolio consists of 23,621 invested in stock that has a beta=0.7, 25,143 invested in...
80.2K
Verified Solution
Link Copied!
Question
Finance
your portfolio consists of 23,621 invested in stock that has a beta=0.7, 25,143 invested in a stock that has a beta=1, and 65,562 invested in a stock that has a beta=1. The risk free rate is 4.9%. Last year this portfolio had a required return of 8.3%. This year nothing has changed except that the market risk premium has increased by 4.8%. What is the portfolio's current required rate of return?
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!