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A mutual fund manager, has a $ 4 0 million portfolio with a beta of 1 . 0 0 . The risk - free rate

A mutual fund manager, has a $40 million portfolio with a beta of 1.00. The risk-free rate is 4.25%, and the market risk premium is 6.00%. She expects to receive an additional $60 million, which she plans to invest in additional stocks. After investing the additional funds, she wants the fund's required return to be 14.00%. What must the average beta of the new stocks be to achieve the target required rate of return?

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