Suppose you are the money manager of a $4.56 million investment fund. The fund consists of four stocks with the following investments and betas:
Stock Investment Beta
A $ 440,000 1.50
B 560,000 (0.50)
C 1,260,000 1.25
D 2,300,000 0.75
If the market's required rate of return is 12% 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.