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A mutual fund manager has a $80 million portfolio with a beta of 2.0. The risk-free rate is 4.8%, and the market risk premium is

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A mutual fund manager has a $80 million portfolio with a beta of 2.0. The risk-free rate is 4.8%, and the market risk premium is 5.5%. The manager expects to receive an additional $20 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 14%. What should be the average beta of the new stocks added to the portfolio? 0 0.3273 0.3818 O 0.3455 0.3636 0 0.4000 Assume that the risk-free rate is 5.00% and the required return on the market is 8.00%. What is the required rate of return on a stock with a beta of 1.650? 18.200% -16.450% O 0.050% 26.450% 9.950%

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