Do you need the answer to the other question you rejected?
Yes, I am still seeking the answer to the question I rejected. There was a link to the solution but it doesn't work for some reason. I would be satisfied with just an answer if you have that. Once I get that I can accept both this one and the one I rejected.
Thanks for your help I sincerely XXXXX XXXXX!
THe answer to that is 14%
Here is the solution
that is not one of my options. my options are 1.12, 1.26, 1.37, 1.59, or 1.73...
Here is the question again:
A mutual fund manager has a $20.0 million portfolio with a Beta of 1.50. The risk-free rate is 4.50% and the market premium is 5.50%. The manager expects to receive an addiditonal $5.0 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 13.00%. What must the average Beta of the new stocks added to the portfolio be to achieve the desired required rate of return?