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Hazel Morrison, a mutual fund manager, has a $40 million portfolio with a beta of 1.00. The risk-free rate is 4.25%, and the market risk

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Hazel Morrison, a mutual fund manager, has a $40 million portfolio with a beta of 1.00. The risk-free rate is 4.25%, and the market risk premium is 6.00%. required and expected return to be 13.00%. What must the average beta of the new stocks be to achieve the target required rate of return? a. 1.94 b. 1.85 c. 2.04 d. 1.76 e. 1.68

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