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eBook HR Industries (HR) has a beta of 1.5; LR Industries's (LRI) beta is 0.9. The risk-free rate is 6%, and the required rate of

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eBook HR Industries (HR) has a beta of 1.5; LR Industries's (LRI) beta is 0.9. The risk-free rate is 6%, and the required rate of return on an average stock is 13%. The expected rate of inflation built into fur falls by 1.5 percentage points, the real risk-free rate remains constant, the required return on the market falls to 10.5%, and all betas remain constant. After all of these changes, what will be the difference in the required returns for HRI and LRI? Do not round intermediate calculations, Round your answer to two decimal places eBook Problem Walk-Through A mutual fund manager has a $20 million portfolio with a beta of 2.4. The nisk-free rate is 2.5%, and the market risk premium is 7%. The manager expects to receive an additional $5 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 20%. What should be the average beta of the new stocks added to the portfolio? Negative value, if any, sheuld be indicated by a minus sign. Do not round intermediate calculations. Round your answer to one decimal place

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