A.)

A mutual fund manager has a $20 million portfolio with a beta of 1.50. The risk-free rate is 4.00%, and the market risk premium is 7.0%. The manager expects to receive an additional $5 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 17%. What should be the average beta of the new stocks added to the portfolio? Do not round intermediate calculations. Round your answer to two decimal places. Enter a negative answer with a minus sign.

B.)

Beale Manufacturing Company has a beta of 2.3, and Foley Industries has a beta of 0.35. The required return on an index fund that holds the entire stock market is 10.5%. The risk-free rate of interest is 5.5%. By how much does Beale's required return exceed Foley's required return? Round your answer to two decimal places.

C.)

You have been managing a $5 million portfolio that has a beta of 0.75 and a required rate of return of 12%. The current risk-free rate is 3.50%. Assume that you receive another $500,000. If you invest the money in a stock with a beta of 0.70, what will be the required return on your $5.5 million portfolio? Do not round intermediate calculations. Round your answer to two decimal places.

D.)

Investment X has a 25% chance of producing a 20% return, a 50% chance of producing a 15% return, and a 25% chance of producing a return of -5%. What is X's expected return?