Portfolio Required Return
Suppose you manage a $5.225 million fund that consists of four stocks with the following investments:
Stock Investment Beta
A $420,000 1.50
B 725,000 -0.50
C 1,180,000 1.25
D 2,900,000 0.75
If the market's required rate of return is 11% 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.