Q8. Assume you manage a $30 Million mutual fund that has a beta of 0.92 and a 11.5% required return. The risk free rate is 2.3%. You now receive another $15 Million that you invest in a stock with a beta of 0.75 . a) How much do you have invested in total in your new portfolio? b) How much will be the beta of the new portfolio? c) Based on the Required return of your actual portfolio, can you estimate how much is the risk premium using CAIM formula? d) With all this information, can you estimate now how much is the return on the new portfolio? Your Answer: a) 45 Million b) 0.863 c) Risk premium 10% d) R new portfolio 10.93%