Question: A mutual fund manager has a $ 4 0 . 0 0 million portfolio with a beta of 1 . 0 0 . The risk

A mutual fund manager has a $40.00 million portfolio with a beta of 1.00. The risk-free rate is 4.25%, and the market risk premium is 6.00%. The manager expects to receive an additional $10.00 million which she plans to invest in additional stocks. After investing the additional funds, she wants the fund's required and expected return to be 12.00%. What must the average beta of the new stocks be to achieve the target required rate of return?
A mutual fund manager has a $40.00 million portfolio with a

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