Question

Suppose you are the money manager of a $4.46 million investment fund. The fund consists of four stocks with the following investments and betas:

Stock	Investment		Beta
A	$   580,000		1.50
B	400,000		(0.50	)
C	1,180,000		1.25
D	2,300,000		0.75

If the market's required rate of return is 8% and the risk-free rate is 5%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places.

  %______

Answer 1