Portfolio required return
Suppose you are the money manager of a $3.86 million investment fund. The fund consists of 4 stocks with the following investments and betas:
| Stock |
Investment |
Beta |
| A |
mce_markernbsp; 380,000 |
1.50 |
| B |
420,000 |
- 0.50 |
| C |
1,260,000 |
1.25 |
| D |
1,800,000 |
0.75 |
If the market's required rate of return is 11% and the risk-free rate is 4%, what is the fund's required rate of return? Round your answer to two decimal places.
%