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Assume you manage a $10 million fund that has a beta of 1.05 and a 9.50 percent required return. The risk-free rate is 2.20 percent.

Assume you manage a $10 million fund that has a beta of 1.05 and a 9.50 percent required return. The risk-free rate is 2.20 percent. You now receive another $14.5 million, which you invest in stocks with an average beta of 0.65. What is the required return on the new portfolio?

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