Quantitative Problem: You are holding a portfolio with the following investments and betas:
| Stock |
Dollar investment |
Beta |
|
| A |
$250,000 |
1.15 |
| B |
100,000 |
1.6 |
| C |
500,000 |
0.65 |
| D |
150,000 |
-0.25 |
| Total investment |
1,000,000 |
|
The market's required return is 11% and the risk-free rate is 3%. What is the portfolio's required return? Round your answer to 3 decimal places. Do not round intermediate calculations.
%