If the markets required rate of return is 12 and the


Suppose you are the money manager of a $4.6 million investment fund. The fund consists of 4 stocks with the following investments and betas:

Stock Investment Beta

A $ 440,000 1.50

B 720,000 - 0.50

C 940,000 1.25

D 2,500,000 0.75

If the market's required rate of return is 12% and the risk-free rate is 5%, 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 12 and the
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