Janet, a mutual fund manager, has a $19 million portfolio with a beta of 1.6 . The risk-free rate is 4.5%, and the market risk premium is 7%. Janet expects to receive an additional $5 million from an investor, which she plans to invest in a number of stocks. After investing the additional funds, she wants the funds required return to be 15%.

What should be the average beta of the new stocks added to the portfolio? Enter your answer in the following format: 1.23 Hint: Answer is between 1.03 and 1.21