Question

You have been managing a $5 million portfolio that has a beta of 1.15 and a required rate of return of 10%. The current risk-free rate is 6.50%. Assume that you receive another $500,000. If you invest the money in a stock with a beta of 1.15, what will be the required return on your $5.5 million portfolio? Do not round intermediate calculations. Round your answer to two decimal places.

Answer #1

You have been managing a $5 million portfolio that has a beta of
1.15 and a required rate of return of 8.025%. The current risk-free
rate is 4%. Assume that you receive another $500,000. If you invest
the money in a stock with a beta of 0.95, what will be the required
return on your $5.5 million portfolio? Do not round intermediate
calculations. Round your answer to two decimal places.

You have been managing a $5 million portfolio that has a beta of
1.30 and a required rate of return of 15%. The current risk-free
rate is 6.50%. Assume that you receive another $500,000. If you
invest the money in a stock with a beta of 0.70, what will be the
required return on your $5.5 million portfolio? Do not round
intermediate calculations. Round your answer to two decimal
places.
%

You have been managing a $5 million portfolio that has a beta of
1.75 and a required rate of return of 11%. The current risk-free
rate is 6.50%. Assume that you receive another $500,000. If you
invest the money in a stock with a beta of 1.75, what will be the
required return on your $5.5 million portfolio? Do not round
intermediate calculations. Round your answer to two decimal
places.

You have been managing a $5 million portfolio that has a beta of
0.85 and a required rate of return of 6.825%. 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 1.15, what will be the required
return on your $5.5 million portfolio? Do not round intermediate
calculations. Round your answer to two decimal places.

You have been managing a $5 million portfolio that has a beta of
0.95 and a required rate of return of 12%. The current risk-free
rate is 7.50%. Assume that you receive another $500,000. If you
invest the money in a stock with a beta of 1.15, what will be the
required return on your $5.5 million portfolio? Do not round
intermediate calculations. Round your answer to two decimal
places.

CAPM and portfolio return
You have been managing a $5 million portfolio that has a beta of
1.50 and a required rate of return of 16%. The current risk-free
rate is 6.50%. Assume that you receive another $500,000. If you
invest the money in a stock with a beta of 1.75, what will be the
required return on your $5.5 million portfolio? Do not round
intermediate calculations. Round your answer to two decimal
places.

You have been managing a $5 million portfolio that has a beta of
0.95 and a required rate of return of 12.125%. The current
risk-free rate is 5%. Assume that you receive another $500,000. If
you invest the money in a stock with a beta of 1.25, what will be
the required return on your $5.5 million portfolio? Do not round
intermediate calculations. Round your answer to two decimal
places.

You have been managing a $5 million portfolio that has a beta of
0.95 and a required rate of return of 11.175%. The current
risk-free rate is 5%. Assume that you receive another $500,000. If
you invest the money in a stock with a beta of 1.25, what will be
the required return on your $5.5 million portfolio? Do not round
intermediate calculations. Round your answer to two decimal
places.

You have been managing a $5 million portfolio that has a beta of
1.25 and a required rate of return of 14.625%. The current
risk-free rate is 4%. Assume that you receive another $500,000. If
you invest the money in a stock with a beta of 1.45, what will be
the required return on your $5.5 million portfolio? Do not round
intermediate calculations. Round your answer to two decimal
places.
%

You have been managing a $5 million portfolio that has a beta of
1.55 and a required rate of return of 10%. The current risk-free
rate is 7.25%. Assume that you receive another $500,000. If you
invest the money in a stock with a beta of 0.85, what will be the
required return on your $5.5 million portfolio? Do not round
intermediate calculations. Round your answer to two decimal places.
%

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