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Quantitative Problem: You are holding a portfolio with the following investments and betas: ...

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Finance

Quantitative Problem: You are holding a portfolio with the following investments and betas:

Stock Dollar investment Beta
A $200,000 1.25
B 100,000 1.70
C 500,000 0.85
D 200,000 -0.30
Total investment $1,000,000

The market's required return is 10% and the risk-free rate is 4%. What is the portfolio's required return? Do not round intermediate calculations. Round your answer to three decimal places.

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