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A mutual fund manager has a $20 million portfolio with a beta of 1.80. The risk-free rate is 7.25%, and the market risk premium is 7.0%. 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 13%. What should be the average beta of the new stocks added to the portfolio?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92865583

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