Quantitative Problem: You are holding a portfolio with the following investments and betas:
Stock Dollar investment Beta A $250,000 1.15 B 100,000 1.6 C 500,000 0.65 D 150,000 -0.25 Total investment 1,000,000
The market's required return is 11% and the risk-free rate is 3%. What is the portfolio's required return? Round your answer to 3 decimal places. Do not round intermediate calculations.
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Quantitative Problem: You are holding a portfolio with the following investments and betas:
| Stock | Dollar investment | Beta |
| A | $250,000 | 1.15 |
| B | 100,000 | 1.6 |
| C | 500,000 | 0.65 |
| D | 150,000 | -0.25 |
| Total investment | 1,000,000 | |
The market's required return is 11% and the risk-free rate is 3%. What is the portfolio's required return? Round your answer to 3 decimal places. Do not round intermediate calculations.
%
Related questions
Portfolio required return
Suppose you are the money manager of a $4.77 million investment fund. The fund consists of four stocks with the following investments and betas:
| Stock | Investment | Beta |
| A | $ 300,000 | 1.50 |
| B | 320,000 | - 0.50 |
| C | 1,500,000 | 1.25 |
| D | 2,650,000 | 0.75 |
If the market's required rate of return is 11% and the risk-free rate is 7%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places.
%
Suppose you are the money manager of a $4.33 million investment fund. The fund consists of four stocks with the following investments and betas:
| Stock | Investment | Beta |
| A | $ 460,000 | 1.50 |
| B | 760,000 | - 0.50 |
| C | 1,060,000 | 1.25 |
| D | 2,050,000 | 0.75 |
If the market's required rate of return is 13% and the risk-free rate is 7%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places.
%
Suppose you manage a $4.39 million fund that consists of four stocks with the following investments:
| Stock | Investment | Beta | |
| A | $400,000 | 1.50 | |
| B | 750,000 | -0.50 | |
| C | 940,000 | 1.25 | |
| D | 2,300,000 | 0.75 | |
If the market's required rate of return is 13% and the risk-free rate is 6%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places.
