# How to calculate a portfolio's required return?

Oct 4th, 2015
Anonymous
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Price: \$5 USD

Question description

43. Consider the following three individuals' portfolios consisting of investments in four stocks:

 Stock Beta Peter's Investment Paul's Investment Mary's Investment Eenie 1.3 2,500 5,000 10,000 Meenie 1.0 2,500 5,000 10,000 Minie 0.8 2,500 5,000 -5,000 Moe -0.5 2,500 -5,000 -5,000

Required: Assuming that the risk-free rate is 4% and the expected return on the market is 12%, then calculate the required return on Mary's portfolio.

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