Suppose you are the money manager of a $4.05 million investment fund. The fund consists of 4 stocks with the following investments and betas:
STOCK INVESTMENT BETA
A $380,000 1.50
B 380,000 - 0.50
C 1,340,000 1.25
D 1,950,000 0.75
If the market's required rate of return is 13% and the risk-free rate is 3%, what is the fund's required rate of return? Round your answer to two decimal places.