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Question
An investor currently holds the following portfolio:| Amount Invested | ||
| 8,000 shares of Stock A | $16,000 | Beta = 1.3 |
| 15,000 shares of Stock B | $48,000 | Beta = 1.8 |
| 25,000 shares of Stock C | $96,000 | Beta = 2.2 |
If the risk-free rate of return is 2% and the market risk premium is 7%, then the required return on the portfolio is
A) 14.91%.
B) 15.93%.
C) 21.91%.
D) 23.93%.
Answer
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