HR Industries (HRI) has a beta of 2.2 , while LR Industries' (LRI) beta is 0.80 . The riskfree rate is 3%, and the required rate of return on an average stock is 10%. The expected rate of inflation built into rRF falls by 1.0 percentage points, the real risk-free rate remains constant, the required return on the market falls to 9.0%, and all betas remain constant. After all of these changes, what will be the difference in the required returns for HRI and LRI, that is, rHRI - rLRI. 10.29% 8.82% 9.31% 9.80% 10.78% Suppose you held a diversified portfolio consisting of a $1,000 investment in each of 10 different common stocks. The portfolio's beta is 1.60 . Now suppose you decided to sell one of the stocks in your portfolio with a beta of 1.50 for $1,000 and use the proceeds to buy another stock with a beta of 1.00 . What would your portfolio's new beta be? 1.6500 1,0000 1.1000 1.5500 You have been managing a $900,000 portfolio that has a beta of 1.50 and a required rate of return of 15%. The current risk-free rate is 3.00%. Assume that you receive another $100,000. If you invest the money in a stock with a beta of 2.3 , what will be the required return on your million dollar portfolio? 14.858% 14.076% 16.422% 15.640% 17.204% A mutual fund manager has a $80 million portfolio with a beta of 2.0 . The risk-free rate is 4.1%, and the market risk premium is 5.5%. The manager expects to receive an additional $20 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 14%. What should be the average beta of the new stocks added to the portfolio? 0.9000 1.0000 0.9500 1.1000 1.0500 Question 15 (1 point) Assume that the risk-free rate is 10.00% and the required return on the market is 13.00%. What is the required rate of return on a stock with a beta of 4.400 ? 3.200% 91.200% 67.200% 23.200% 111.200%