The quoted rate of the short-term government security is 5% and a 2% premium is added to rate to reflect the market return. What is the required rate of return of the portfolio? (In percentage, put percentage sign) Blue Co. has an investment fund consist of three stocks as follows: STOCK INVESTMENT BETA ABC 500,000 1 DEF 1,250,000 0.8 XYZ 750,000 1.5

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 20P
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The quoted rate of the short-term government security is 5% and a 2% premium is added to rate to reflect the market return. What is the required rate of return of the portfolio? (In percentage, put percentage sign)

Blue Co. has an investment fund consist of three stocks as follows:

STOCK INVESTMENT BETA
ABC 500,000 1
DEF 1,250,000 0.8
XYZ 750,000 1.5
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