You manage a $34 million portfolio has a beta of 0.89 and an expected return...
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You manage a $34 million portfolio has a beta of 0.89 and an expected return of 9.7% per year. You intend to invest an additional $10 million in the portfolio so that the expected return increases to 11.1% per year. If the risk-free interest rate is 5.2% per year, what does the beta of the new investment need to be? A) 1.79 B) 2.04 ho OC C) 2.11 OD) 1.83 E) 1.94
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