> CAPM PORTFOLIO RETURN?

CAPM PORTFOLIO RETURN?

Posted at: 2014-12-05 
CAPM and portfolio return

You have been managing a $5 million portfolio that has a beta of 1.30 and a required rate of return of 16%. The current risk-free rate is 6.00%. Assume that you receive another $500,000. If you invest the money in a stock with a beta of 1.00, what will be the required return on your $5.5 million portfolio? Round your answer to two decimal places.