Portfolio consists of $100,000 with beta of 0.8, $150,000 with beta of 1.2, and $50,000 with a beta of 1.8. Risk free rate is 7%. Last year required rate of return was 13%. This year nothing changed except market risk premium increased 2%. What is portfolios current required rate of return?© BrainMass Inc. brainmass.com October 9, 2019, 5:12 pm ad1c9bdddf
Portfolio Beta = Weighted average of the ...
The solution discloses all the formulas and calculations to arrive at the answer.