Computing the average beta for the new stocks

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Reference no: EM1377910

Walter Jasper currently manages a $500,000 portfolio. He is expecting to receive an additional $250,000 from a new consumer. The existing portfolio has a required return of 10.75%. The risk-free rate is 4% and the return on the market is 9%. If Walter wants the required return on the new portfolio to be 11.5%, what should be the average beta for the new stocks added to the portfolio?

Reference no: EM1377910

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Computing the average beta for the new stocks : Walter Jasper currently have a $500,000 portfolio. He is expecting to earn an additional $250,000 from a new consumer. The existing portfolio has a required return of 10.75%.

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