PORTFOLIO REQUIRED RETURN
Suppose you are the money manager of a $4.42 million investment fund. The fund consists of four stocks with the following investments and betas:
Stock Investment Beta
A $ 460,000 1.50
B 560,000 (0.50)
C 900,000 1.25
D 2,500,000 0.75
If the market's required rate of return is 10% and the risk-free rate is 3%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places