Question: (Please use a math, finance equation and/ or formula. DONT USE A SHEET CHART, EXCEL, OR GRAPH) 11) A mutual fund manager has $10 million

(Please use a math, finance equation and/ or formula. DONT USE A SHEET CHART, EXCEL, OR GRAPH)

11) A mutual fund manager has $10 million portfolio with a beta of 1.5. The risk-free rate is 4.0%, and the market risk premium is 5%. 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 funds required return to be 12%. What should be the average beta of the new stocks added to the portfolio?

1.80

1.05

1.63

1.54

1.28

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