Finance Assignment | Professional Writing
May 21st, 2020
A mutual fund manager has a $20 million portfolio with a beta of 1.10. The risk-free rate is 5.25%, and the market risk premium is 5.5%.
Don't use plagiarized sources. Get Your Assignment on
Finance Assignment | Professional Writing
Just from $13/Page
The manager expects to receive an additional $5 million, which she plans to invest in a number of stocks. After investing the additional funds, she wants the fund’s required return to be 19%. What should be the average beta of the new stocks added to the portfolio? Round your answer to two decimal places.
Get Finance homework help today