Question: Consider the following information and then calculate the required rate of return for the Scientific Investment Fund, which holds 4 stocks. The market's required rate of return is 15.0%, the risk-free rate is 7.0%, and the Fund's assets are as follows:
Stock
Stock Investment Beta
A $200,000 1.50
B 300,000 -0.50
C 500,000 1.25
D 1,000,000 0.75
a. 10.67%
b. 11.23%
c. 11.82%
d. 12.45%
e. 13.10%