This paper circulates around the core theme of The risk-free rate, kRF, is 2.2 percent and the market risk premium together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 59. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
The risk-free rate, kRF, is 2.2 percent and the market risk premium, (kM – kRF), is 5 percent. Assume that required returns are based on the CAPM. Your $1 million portfolio consists of $590,000 invested in a stock that has a beta of 1.8 and the remainder invested in a stock that has a beta of 1.0.What is the required return on this portfolio?