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Question for you: Problem: you manage a $75 million portfolio for which the required return is r,=13%. You plan to purchase $25 million worth of

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Question for you: Problem: you manage a $75 million portfolio for which the required return is r,=13%. You plan to purchase $25 million worth of new stocks and add them to the portfolio. The average beta for the new stocks is B25 =1.1 What will be the ave beta of your $100m portfolio( B100) if the risk free rate is 4% and the return on the market is 10%? - (clicker coming) 175=13% r74% Im=10% B25=1.1 B100=

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