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Author Question: A mutual fund manager has a $26 million portfolio with a beta of 1.1. The risk-free rate is 5.3%, ... (Read 58 times)

xxxxxxxxxxxx

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on: Aug 7, 2023
A mutual fund manager has a $26 million portfolio with a beta of 1.1. The risk-free rate is 5.3%, and the market risk premium is 7%. The manager expects to receive an additional $29 million, which they plan to invest in additional stocks. After investing the additional funds, they want the fund’s required and expected return to be 16%. What must the average beta of the new stocks be to achieve the target required rate of return?

◦

1.65


◦

1.72


◦

1.80


◦

1.91

Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
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Marked as best answer by xxxxxxxxxxxx on Aug 7, 2023

hiyayyay

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Reply #1 on: Aug 7, 2023
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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xxxxxxxxxxxx

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Reply 2 on: Aug 7, 2023
Thanks for the timely response, appreciate it

dyrone

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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