Question

Suppose you are the money manager of a $4.12 million investment fund. The fund consists of...

Suppose you are the money manager of a $4.12 million investment fund. The fund consists of four stocks with the following investments and betas:

Stock Investment Beta
A $   460,000 1.50
B 800,000 (0.50 )
C 1,160,000 1.25
D 1,700,000 0.75

If the market's required rate of return is 13% and the risk-free rate is 6%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places.

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