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    tolejala's Avatar
    tolejala Posts: 1, Reputation: 1
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    #1

    Apr 5, 2010, 05:41 AM
    Beta
    PORTFOLIO BETA A mutual fund manager has a $20 million portfolio with a beta of 1.5.
    The risk-free rate is 4.5%, and the market risk premium is 5.5%. 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 13%. What
    Should be the average beta of the new stocks added to the portfolio?
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    Apr 5, 2010, 07:30 PM

    Please always start your own thread for your question. I've moved it off the thread you tagged onto.

    Then please read the guidelines for posting homework that are in red print at the top of this forum.

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