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 March 4, 2021, 6:34 pm ad1c9bdddf
Portfolio Beta = Weighted average of the ...
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