You are the money manager of a $10 million investment fund, which consists of four stocks. This fund has the following investments and betas:
Stock Investment Beta
A $3,000,000 1.50
B $1,000,000 (0.50)
C $2,000,000 1.25
D $4,000,000 0.75
If the market's required rate of return is 12 percent, and the risk-free rate is 4 percent, what is the fund's required rate of return?