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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.

= %

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