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300 million portfolio with beta of 1.25. risk free rate is 3%, mrp is 5%. manager expects to receive additional 100 million and plans to

300 million portfolio with beta of 1.25. risk free rate is 3%, mrp is 5%. manager expects to receive additional 100 million and plans to invest in different stocks. after additional funds invested she wants to reduce portfolios risk level so that the required return is 8.5%. What must the average beta of the new stocks added to the portfolio be to achieve the desired required rate of return?

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