If the markets required rate of return is 11 and the


Suppose you are the money manager of a $5.15 million investment fund. The fund consists of four stocks with the following investments and betas:

Stock Investment Beta

A $ 500,000 1.50

B 400,000 (0.50)

C 1,500,000 1.25

D 2,750,000 0.75

If the market's required rate of return is 11% and the risk-free rate is 6%, what is the fund's required rate of return? Do not round intermediate calculations. 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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