If the markets required rate of return is 8 and the


Suppose you are the money manager of a $4.93 million investment fund. The fund consists of 4 stocks with the following investments and betas:

Stock

Investment

Beta

A

$460,000

1.50

B

660,000

- 0.50

C

1,260,000

1.25

D

2,550,000

0.75

If the market's required rate of return is 8% and the risk-free rate is 3%, what is the fund's required rate of return?

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