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What will be the required return

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Question - You have been managing a $5 million portfolio that has a beta of 1.35 and a required rate of return of 10.425%. The current risk-free rate is 3%. Assume that you receive another $500,000. If you invest the money in a stock with a beta of 1.65, what will be the required return on your $5.5 million portfolio?

Reference no: EM133074788

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