15. A mutual fund currently has $80,000,000 invested in it with a portfolio beta = 1.2. The market risk premium is 6%, as is the Treasury Bill rate. The fund manager expects to receive an additional $20,000,000 in funds soon. She wants to invest these funds in a variety of stocks. After making these additional investments, she wants the fund's expected return to be 13.5%. What should be the average beta of the new stocks added to the portfolio? a. 1.10 b. 1.33 1.45 1.64 1.87 C. d. e.

15. A mutual fund currently has $80,000,000 invested in it with a portfolio beta =1.2. The market risk premium is 6%, as is the Treasury Bill rate. The fund manager expects to receive an additional $20,000,000 in funds soon. She wants to invest these funds in a variety of stocks. After making these additional investments, she wants the fund's expected return to be 13.5%. What should be the average beta of the new stocks added to the portfolio? a. 1.10 b. 1.33 c. 1.45 d. 1.64 e. 1.87