What is the required rate of return of the portfolio

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Reference no: EM133141531

Question - Bulldogs Inc. has an investment fund tied-up on the following shares:

Shares

Investment

Beta

BDO

210,000

2.00

TEL

90,000

2.00

SMC

300,000

1.00

What is the required rate of return of the portfolio held by Bulldogs Inc. if the nominal rate of the short-term government issued security is 2.25% and the overall market risk premium is 3.50%?

a. 1.50%

b. 6.50%

c. 7.50%

d. 2.50%

Reference no: EM133141531

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