A * * * fund manager has a portfolio of 20000K, beta = 1.5. Suppose the risk-free rate of return is 4.5% and the market risk premium is 5.5%. (Here we can calculate his expected rate of return = 4.5%+1.5 * 5.5% =12.75%). Now he wants to accept the investment of 5000K immediately, and she wants to invest the new money in different stocks. After the investment is completed, she hopes that the expected return rate of the portfolio will reach 13%, so what should be the beta of the new fund in the portfolio? There are various methods. First, we can find the expected return value of the expected return of the fund = 13% * (20000+5000) = 3250 = 3250-20000 *. 12.75%=700 (so there is the equation 5000*[4.5%+β*5.5%]=700, and the bold part is the expected rate of return of new investment). The average beta coefficient of new stocks added to the portfolio = (700/5000-4.5.