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You are a manger of the Lowell Fund and manage a portfolio of $21 mikson. Your portfolio has a beta of 12 and required retum

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You are a manger of the Lowell Fund and manage a portfolio of $21 mikson. Your portfolio has a beta of 12 and required retum of 12 percent You recelve $4 million additional to invest in the portfollo, and you invest it in a stock with a beta of 16 . The risk-free rate is 5 percent. What is the required return on the new poitfolio? (Hint. Calculate weighted ayerage beti after new capital investment) A. 10.78% B. 1.26% C. 1237% D. 3.81% E. 9.42% F. 580% You are a manger of the Lowell Fund and manage a portfolio of $21 mikson. Your portfolio has a beta of 12 and required retum of 12 percent You recelve $4 million additional to invest in the portfollo, and you invest it in a stock with a beta of 16 . The risk-free rate is 5 percent. What is the required return on the new poitfolio? (Hint. Calculate weighted ayerage beti after new capital investment) A. 10.78% B. 1.26% C. 1237% D. 3.81% E. 9.42% F. 580%

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