PORTFOLIO BETA A mutual fund manager has a $20 million portfolio with a beta of 1 5.

The risk-free rate is 4 5%, and the market risk premium is 5 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 fund’s required return to be 13%. What should be the average beta of the new stocks added to the portfolio?AppendixLO1