What is the required rate of return on the new portfolio

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Reference no: EM13937524

You manage a $20M mutual fund that has a beta of 1.40 and a 10.30% required return. The risk-free rate is 3.30%. You now receive an additional $5M, which you invest in stocks with an average beta of 0.80. What is the required rate of return on the new portfolio?

Reference no: EM13937524

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