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How do I solve this problem The steps on how to do so thank you. QUESTIDN 8.3: A portfolio manager is holding the following investments

How do I solve this problem The steps on how to do so thank you.

image text in transcribed QUESTIDN 8.3: A portfolio manager is holding the following investments in her portfolio: M Amount Invested Estimated Beta 1 $ 31112} million 1.2 2 560 million 1.4 3 320 million 11'? 4 231} million 1.3 The risk-free rate is 5% end the market risk premium is also 5%. If the manager sells half of her investment in Stock 2 ($231} million} and puts the money,r in Stock 4, by ll-'D'W manyr percentage points will her portfolio's required return increase? A] 11.16% a] oases o} 0.40% D] [1.50%

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