Assume that you receive another 500000 if you invest the, Financial Management

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Assume that you receive another 500000 if you invest the

CAPM AND PORTFOLIO RETURN You have been managing a $5 million portfolio that has a beta of 1 25 and a required rate of return of 12%. The current risk-free rate is 5 25%.

Assume that you receive another $500,000. If you invest the money in a stock with a beta of 0 75, what will be the required return on your $5 5 million portfolio?

Can you please show your work and explain how you obtained the answer?

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