Consider the following information and then calculate the required rate of return for the Global Pepe Investment Fund(GPIF), which holds 4 stocks. The market’s required rate of return is 13.25%, the risk-free rate is 7.00%, and the Fund’s assets are as follows:
Stock Investment Beta
A $ 200,000 1.50
B 300,000 −0.50
C 500,000 1.25
D $1,000,000 0.75