If the markets required rate of return is 12 and the


Suppose you are the money manager of a $4.56 million investment fund. The fund consists of four stocks with the following investments and betas:

Stock    Investment    Beta

A            $   440,000     1.50

B                560,000       (0.50)

C                1,260,000     1.25

D                 2,300,000      0.75

If the market's required rate of return is 12% and the risk-free rate is 7%, 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 12 and the
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