Business
Business, 21.11.2019 03:31, cupcake3103670

Amutual fund manager has a $40 million portfolio with a beta of 1.00. the risk-free rate is 4.25%, and the market risk premium is 6.00%. the manager expects to receive an additional $20 million which she plans to invest in additional stocks. after investing the additional funds, she wants the fund's required and expected return to be 13.00%. what must the average beta of the new stocks be to achieve the target required rate of return?

1.99

2.71

2.76

1.80

2.40

answer
Answers: 3

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Amutual fund manager has a $40 million portfolio with a beta of 1.00. the risk-free rate is 4.25%, a...

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