A mutual fund manager has a $60 million portfolio with a beta of 1.00. The risk-free rate is 4%, and the market risk premium is 8.00%. The manager expects to receive an additional $20 million which she plans to invest in additional stocks. After investing the additional funds, she wants the fund's required and expected return to be 14.00%. What must the average beta of the new stocks be to achieve the target required rate of return?
