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Author Question: Assume that you manage an $11.25 million mutual fund that has a beta of 1.3 and an 11% required ... (Read 19 times)

xsk4r3kr0w

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on: Aug 7, 2023
Assume that you manage an $11.25 million mutual fund that has a beta of 1.3 and an 11% required return. The risk-free rate is 5.1%. You now receive another $6.75 million, which you invest in stocks with an average beta of 0.72. What is the required rate of return on the new portfolio? (Hint: You must first find the market risk premium, then find the new portfolio beta.)

◦

9.50%


◦

9.85%


◦

10.01%


◦

10.27%

Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
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Marked as best answer by xsk4r3kr0w on Aug 7, 2023

saly

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Reply #1 on: Aug 7, 2023
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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xsk4r3kr0w

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Reply 2 on: Aug 7, 2023
Great answer, keep it coming :)

sarah_brady415

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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