What will be the required return on million portfolios

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Question 1: You are working as a portfolio manager at Arif Habib Investments and currently you are managing a Rs. 5 million portfolios that has a beta of 1.25 and a required rate of return of 12%. The current risk-free rate is 5.25%. Assume that you receive another Rs. 500,000. If you invest the money in a stock with a beta of 0.75, what will be the required return on your Rs. 5.5 million portfolios?

Reference no: EM132569161

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