If the markets required rate of return is 9 degreeo and the


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.

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Financial Management: If the markets required rate of return is 9 degreeo and the
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