7. A fund manager has a $10 million portfolio with a beta of 0.80. The manager expects to receive an additional $2 million she plans to invest in stocks. After investing the additional money, she wants the fund's required return to be 15.5%. The risk-free rate is 4% and the return on the market portfolio is 16%. What should the average beta of the new stocks added to the portfolio equal?

7. A fund manager has a $10 million portfolio with a beta of 0.80 . The manager expects to receive an additional $2 million she plans to invest in stocks. After investing the additional money, she wants the fund's required return to be 15.5%. The risk-free rate is 4% and the return on the market portfolio is 16%. What should the average beta of the new stocks added to the portfolio equal