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Current risk-free rate

You been managing a $5 million dollar portfolio that has a beta of 1.25 and a required rate of return of 13%. The current risk-free rate is 5.25%, Assume that you receive another $500,000. If you invest in a stock with a beta of .75, what will be the required return on your $5.5 million portfolio?

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Current risk-free rate

Reference No:- TGS0680071

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : Case study of mickelson corporation

Q : How many units must be purchased in september

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Q : Nonfatal occupational injuries and illnesses

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Current risk-free rate

Reference No:- TGS0680071

Recent Questions Asked Finance Basics

Q : Case study of mickelson corporation

Q : How many units must be purchased in september

Q : Determine the depreciation expense and the ending book value

Q : Nonfatal occupational injuries and illnesses

Q : Current risk-free rate

Q : Find intitial investment under macrs by five-year recovery

Q : Depreciation expense gain on sale of equipment

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Q : Equation of the least squares regression line

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