Suppose you are the money manager of a $5.28 million investment fund. The fund consists of four stocks with the following investments and betas:
Stock | Investment | Beta | ||
A | $ 440,000 | 1.50 | ||
B | 600,000 | (0.50 | ) | |
C | 1,540,000 | 1.25 | ||
D | 2,700,000 | 0.75 |
If the market's required rate of return is 9% 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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