Suppose you are the money manager of a $4.93 million investment fund. The fund consists of 4 stocks with the following investments and betas:
Stock
|
Investment
|
Beta
|
A
|
$460,000
|
1.50
|
B
|
660,000
|
- 0.50
|
C
|
1,260,000
|
1.25
|
D
|
2,550,000
|
0.75
|
If the market's required rate of return is 8% and the risk-free rate is 3%, what is the fund's required rate of return?