Question: Hazel Morrison, a mutual fund manager, has a $ 2 5 million portfolio with a beta of 0 . 9 0 . The risk -

Hazel Morrison, a mutual fund manager, has a $25 million portfolio with a beta of 0.90. The risk-free rate is 4.75%, and the market risk premium is 7.00%. Hazel expects to receive an additional $65 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 14.00%. What must the average beta of the new stocks be to achieve the target required rate of return?
a.1.69
b.1.48
c.3.24
d.1.30
e.1.74
 Hazel Morrison, a mutual fund manager, has a $25 million portfolio

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