What does the beta of the new investment need to be

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Problem 1: You manage a $15 million portfolio that has a beta of 1.23 and an expected return of 11.6% per year. You intend to invest an additional $5 million in the portfolio so that the expected return increases to 12.5% per year. If the market risk premium is 5.3% per year, what does the beta of the new investment need to be?

Reference no: EM132693769

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