Portfolio beta=Respective beta*Respective investment weight
=(220,000/4,840,000*1.5)+(600,000/4,840,000*-0.5)+(1,320,000/4,840,000*1.25)+(2,700,000/4,840,000*0.75)
=0.765495868
Required return=risk free rate+beta*(market rate-risk free rate)
=4+0.765495868*(8-4)
=7.06%(Approx).
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