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Find the average beta of the new stocks to achieve the goal

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Problem: A portfolio with a value of $40,000,000 has a beta = 1. Risk free rate = 4.25%, market risk premium = 6.00%. An additional $60,000,000 will be included in the portfolio. After that, the expected return should be 13%. Find the average beta of the new stocks to achieve the goal. Please provide the complete answer in detail.

Reference no: EM132418826

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