If the markets required rate of return is 13 and the


Suppose you are the money manager of a $4.05 million investment fund. The fund consists of 4 stocks with the following investments and betas:

STOCK INVESTMENT BETA

A $380,000 1.50
B 380,000 - 0.50
C 1,340,000 1.25
D 1,950,000 0.75

If the market's required rate of return is 13% and the risk-free rate is 3%, what is the fund's required rate of return? Round your answer to two decimal places.

 

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Finance Basics: If the markets required rate of return is 13 and the
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