Determining the required return on million dollar portfolio


Assignment:

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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Corporate Finance: Determining the required return on million dollar portfolio
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