A. Parleon has a Php40-million portfolio with a beta of 1.20. The risk- free rate is 5%, and the market risk premium is 6%. Parleon expects to receive an additional Php40 million which she plans to invest in the stock market. After investing the additional funds, she wants the fund's required and expected return to be 15%. What must be the average beta of the new stock to reach the target required rate of return?

B. Kara is the portfolio manager of RCBC Fund , a Php 3.5 million hedge fund that contains the stock shown below. The required rate of return on the market is 11% and the risk-free rate is 5%. What rate can be the investors expect and demand from this fund?

C. L Corp. has a beta of 1.5 and is currently in equilibrium. The required rate of return on the stock is 12% against a required return on an average stock of 10%. The required rate of return on the average stock increases by 30%. Neither the betas nor the risk-free rate has changed. What is L Corp.'s new required rate of return?