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2. (10 percent) Assume that you manage a $12.00 million mutual fund that has a beta of 1.15 and a 9.70% required return. The risk-free

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2. (10 percent) Assume that you manage a $12.00 million mutual fund that has a beta of 1.15 and a 9.70% required return. The risk-free rate is 2.20%. You now receive another $15 million, which you invest in stocks with an average beta of 1.05. What is the required rate of return on the new portfolio? Do not round your intermediate calculations

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