A-Z 15. Problem 8.17 (Portfolio Beta) Ofice eBook A mutual fund manager has a $20 million portfolio with a beta of 1.70. The risk-free rate is 6.00%, and the market risk premium is 6.0%. The manager...

Extracted text: A-Z 15. Problem 8.17 (Portfolio Beta) Ofice eBook A mutual fund manager has a $20 million portfolio with a beta of 1.70. The risk-free rate is 6.00%, and the market risk premium is 6.0%. The manager expects to receive an additional $5 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 16%. What should be the average beta of the new stocks added to the portfolio? Negative value, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to two decimal places.