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CAPM and portfolio return

You have been managing a $5 million portfolio that has a beta of 1.00 and a required rate of return of 15%. The current risk-free rate is 6.00%. Assume that you receive another $500,000. If you invest the money in a stock with a beta of 1.45, what will be the required return on your $5.5 million portfolio?

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Jean Keeling
Jean KeelingLv2
28 Sep 2019

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