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An hedge fund manager is managing a portfolio of 20 million dollars. The portfolio has a beta of 1.5, risk free rate of 4.5% and
An hedge fund manager is managing a portfolio of 20 million dollars. The portfolio has a beta of 1.5, risk free rate of 4.5% and market risk premium of of 5.5%. The manager expects that next month he will have to sell some assets worth 5 million dollars. After the sale, the required rate of return on the portfolio becomes 15%.What should be the beta of the assets that will be sold next month???
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