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The $10.00 million mutual funds Henry manages has a beta of 1.20 and an 11.20% required return. The risk-free rate is 4.00%. Henry now receives

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The $10.00 million mutual funds Henry manages has a beta of 1.20 and an 11.20% required return. The risk-free rate is 4.00%. Henry now receives another $5.00 million, which he invests in stocks with an average beta of 0.85. 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.)

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