Question: Suppose you are the money manager of a 4 million investment fund. The fund consists of 4 stocks with the following investments and betas.
Stock A 400,000 beta 1.50
Stock B 60,000 beta (0.50)
Stock C 1,000,000 beta 1.25
Stock D 2,000,000 beta 0.75
If the market required rate of return is 14% and the risk-free rate is 6%, what is the fund's required rate of return?