If you invest the money in a stock with a beta of 085 what


CAPM and Portfolio Return

You have been managing a $5 million portfolio that has a beta of 1.70 and a required rate of 13%. The current risk-free rate is 5.50%. Assume that you receive another $500,000. If you invest the money in a stock with a beta of 0.85, what will be the required return on your $5.5 million portfolio? Do not round intermediate calculations. Round your answer to two decimal places. ____%

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Financial Management: If you invest the money in a stock with a beta of 085 what
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