Question: The answer is 0.37, but not sure how to solve. Walter Jasper currently manages a $600 portfolio. He is expecting to receive an additional $300

The answer is 0.37, but not sure how to solve.

The answer is 0.37, but not sure how to solve. Walter

Walter Jasper currently manages a $600 portfolio. He is expecting to receive an additional $300 from a new client. The existing portfolio has a required return of 10.5 percent. The risk-free rate is 4 percent and the return on the market is 16 percent. If Walter wants the required return on the new portfolio to be 9.8 percent, what should be the average beta for the new stocks added to the portfolio? Round your final answer to two decimals. Answer: -0.33 X (0.37)

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