An investor currently holds the following portfolio: Amount Invested 8,000 shares of Stock A $16,000 Beta 1.3 15,000 shares of Stock B 25,000 shares of Stock C $48,000 $96,000 Beta 1.8 Beta = 2.2 If the risk-free rate of return is 0.047 and the market risk premium is 0,047, then the required return on the portfolio is Instruction: Type your answer as a decimal, and round to three decimal places. E.g., if your answer is 0.0106465 or 1.06465%, should type ONLY the number .011, neither 0.0106465, 0.0106, nor 1.065. Otherwise, Blackboard will treat it as a wrong answer.

An investor currently holds the following portfolio: Amount Invested 8,000 shares of Stock A $16,000 Beta 1.3 15,000 shares of Stock B 25,000 shares of Stock C $48,000 $96,000 Beta 1.8 Beta = 2.2 If the risk-free rate of return is 0.047 and the market risk premium is 0,047, then the required return on the portfolio is Instruction: Type your answer as a decimal, and round to three decimal places. E.g., if your answer is 0.0106465 or 1.06465%, should type ONLY the number .011, neither 0.0106465, 0.0106, nor 1.065. Otherwise, Blackboard will treat it as a wrong answer.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 16P

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