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A mutual fund manager has a $20 million portfolio with a beta of 1.80. The risk-free rate is 4.25%, and the market risk premium is 6.0%. 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 15%. What should be the average beta of the new stocks added to the portfolio? Do not round intermediate calculations. Round your answer to two decimal places.

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Financial Management, Finance

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