Suppose you manage a $4.175 million fund that consists of four stocks with the following investments:
|
Stock
|
Investment
|
Beta
|
|
A
|
$420,000
|
|
1.50
|
|
B
|
475,000
|
|
-0.50
|
|
C
|
1,380,000
|
|
1.25
|
|
D
|
1,900,000
|
|
0.75
|
If the market's required rate of return is 11% and the risk-free rate is 7%, what is the fund's required rate of return? Round your answer to two decimal places.