PORTFOLIO REQUIRED RETURN Suppose you are the money manager of a $4 million investment fund. The fund consists of four stocks with the following investments and betas:
|
Stock
|
Investment
|
Beta
|
|
A
|
$ 400,000
|
1.50
|
|
B
|
600,000
|
(0.50)
|
|
C
|
1,000,000
|
1.25
|
|
D
|
2,000,000
|
0.75
|
If the market's required rate of return is 14% and the risk-free rate is 6%, what is the fund's required rate of return?