If the markets required rate of return is 11 and the


Suppose you are the money manager of a $3.81 million investment fund. The fund consists of 4 stocks with the following investments and betas:

Stock, Investment, Beta

Stock A, investment 280,000, beta 1.50

Stock B, investment 360,000, beta - 0.50

Stock C, investment 1,420,000, beta 1.25

Stock D, investment 1,750,000, beta 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.

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Financial Management: If the markets required rate of return is 11 and the
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