Solve the given problem
Suppose you are the money manager of a $4.27 million investment fund. The fund consists of four stocks with the following investments and betas:
|
Stock
|
Investment
|
Beta
|
|
A
|
$ 980,000
|
1.50
|
|
B
|
520,000
|
- 0.50
|
|
C
|
1,220,000
|
1.25
|
|
0
|
2,050,000
|
0.75
|
If the market's required rate of return is 9 degree/o and the risk-free rate is 3%, what is the fund's required rate of return? Do not round intermediate calculations.