PORTFOLIO REQUIRED RETURN
Suppose you are the money manager of a $4.93 million investment
fund. The fund consists of four stocks with the following investments and betas:
Stock A B C D
Investment $ 280,000 $ 740,000 1,260,000 2,650,000
Beta 1.50 (0.50) 1.25 0.75
If the market's required rate of return is 11% 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.