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2. A mutual fund manager has a $200 million portfolio with a beta of 1.95, The risk-free rate is 4%, and the markets requina ate

2. A mutual fund manager has a $200 million portfolio with a beta of 1.95, The risk-free rate is 4%, and the markets requina ate of return is 10%. The manager expects to receive an additionat S$0 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 16%. What should be the average beta of the new stocks added to the portfolio? (10 points)

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