Question: Please help me solve this like above Please DO NOT USE EXCEL mutual fund manager has a $200,000,000 portfolio with a beta -1.2. Assume that

Please help me solve this like above Please DO NOT USE

Please help me solve this like above

Please DO NOT USE EXCEL

mutual fund manager has a $200,000,000 portfolio with a beta -1.2. Assume that the risk-free rate is 6 at the market risk premium is 8 percent. The manager expects to receive an additional 2. A mutual mana percent and th $50 ,000,000 in funds soon. She wants to invest these funds in a variety of stocks. She wants the expected return of the new funds to be 1 stocks added to the portfolio? a. 75 5 percent. What should be the average beta of the new 6(8) 4(7) = 1-125 1 1.125 c. 1.2 d. 3.5 e. none of the above

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