You have a fairly strong investment portfolio what return


You have a fairly strong investment portfolio (see amounts and beta value below). However, a new opportunity has presented itself and you are unsure if it is worth the investment. Given that the projected market return is 12% and the risk free rate is 3%, what return would you require from this new investment for it to be attractive. Once you've calculated the result, explain the answer.

Asset Investment Amount Beta

A $50,000 0.5

B $75,000 0.63

C $33,000 0.87

D $97,000 0.99

E $120,000 1.6

F $234,000 1.45

Request for Solution File

Ask an Expert for Answer!!
Financial Management: You have a fairly strong investment portfolio what return
Reference No:- TGS02625820

Expected delivery within 24 Hours