Suppose you are the money manager of a $4 million investment fund. The fund consists of four stocks with the following investment and betas:
Stock: Investment: Beta:
A. $400,000 1.50
B. $600,000 -.50
C. $1,000,000 1.25
D. $2,000,000 0.75
If the market required rate of return is 14 percent and the risk-free rate is 6 percent, what is the fund's required rate of return?
Please show all work.