A money manager is holding the following portfolio :

Stock		Amount Invested		Beta
1		$300,000		0.6
2		$300,000		1
3		$500,000		1.4
4		$500,000		1.8

The risk free rate is 6 percent and the portfolio%u2019s required rate of return is 12.5 percent. The manager would like to sell all of her holdings of Stock 1 and use the proceeds to purchase more shares of Stock 4. What would be the portfolio%u2019s required rate of return following this change? SHOW ALL WORK!!