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Portfolio Required Return

Suppose you manage a $3.875 million fund that consists of four stocks with the

following investments:

Stock Investment Beta

A $220,000  1.50

B 425,000  -0.50

C 1,380,000  1.25

D 1,850,000  0.75

If the market's required rate of return is 12% and the risk-free rate is 6%, 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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So, Fund's Required Rate of Return is... View the full answer


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