What is the required return for dentrix corporation

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Reference no: EM132002932

A) An investor has put money in four stocks in the dollar amounts indicated and with betas specified. What is the portfolio beta? Stock A $3,453 with a beta of 1.05; stock B $6,941 with a beta of 1.21; stock C $4,350 with a beta of 1.14; and stock D $6,989 with a beta of 1.11. Show your answer rounded to two decimal points.

B) What is the required return for Dentrix Corporation? The risk-free rate is 3.2%, the risk premium is 7.7, the expected rate of inflation is 3.4% and the company can currently issue bonds at a YTM of 4.9%. The company's beta is estimated to be 1.06. round your answer to two decimal places and express your answer as a percentage, not as a decimal.

Reference no: EM132002932

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