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A mutual fund manager has an $80 million portfolio with a beta of 2.0. The risk-free rate is 2.10% and the market risk premium is

A mutual fund manager has an $80 million portfolio with a beta of 2.0. The risk-free rate is 2.10% 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?

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