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Business, 30.10.2021 08:50 MIa2020

A mutual fund manager has a $20 million portfolio with a beta of 2.4. The risk-free rate is 3.5%, and the market risk premium is 9%. The manager expects to receive an additional $5 million, which she plans to invest in a number of stocks. After investing the additional funds, she wants the fund's required return to be 26%. What should be the average beta of the new stocks added to the portfolio

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A mutual fund manager has a $20 million portfolio with a beta of 2.4. The risk-free rate is 3.5%, an...
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