If the markets required rate of return is 11 and the


Suppose you are the money manager of a $4.13 million investment fund. The fund consists of four stocks with the following investments and betas:

Stock

Investment

Beta

A

$460,000

1.50

B

580,000

- 0.50

C

1,140,000

1.25

D

1,950,000

0.75

If the market's required rate of return is 11% and the risk-free rate is 7%, 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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Finance Basics: If the markets required rate of return is 11 and the
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