The $10.00 million mutual fund Henry manages has a beta of 1.05 and a 9.50% required return. The risk-free rate is 4.20%. Henry now receives another $10.00 million, which he invests in stocks with an average beta of 0.65. What is the required rate of return on the new portfolio? (Hint: You must first find the market risk premium, then find the new portfolio beta.)

Select the correct answer.

a. 8.49%

b. 8.65%

c. 8.57%

d. 8.41%

e. 8.33%

The $10.00 million mutual fund Henry manages has a beta of 1.05 and a 9.50\% required return. The risk-free rate is 4.20%. Henry now receives another \$10.00 million, which he invests in stocks with an average beta of 0.65 . What is the required rate of return on the new portfolio? (Hint: You must first find the market risk premium, then find the new portfolio beta.) Select the correct answer. a. 8.49% b. 8.65% c. 8.57% d. 8.41% e. 8.33%