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Assume that you manage a $12.00 million mutual fund that has a bete of 1.25...

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Assume that you manage a $12.00 million mutual fund that has a bete of 1.25 and a 9.50% required return. The risk-freerite is 2.20%. You now receive another $4.00 million, which you invest in stocks with an average beta of 0.56. What is the required rite of return on the new portfolio (Hint: You must first find the market risk premium, then find the new portfolio beta.) Do not round your intermediate calculations 10.37 5.9 12 . 10 DON

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