# CAPM and beta coefficient

A money manager is managing the account of a large investor. The investor holds the following stocks:

Stock Amt Invested Estimated Beta

A 2,000,000 .8

B 5,000,000 1.1

C 3,000,000 1.4

D 5,000,000 ???

The protfolio's required rate of return in 17%. The risk-free rate is 7% percent and the return on the market is 14%. What is Stock D's estimated beta?

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