Suppose you are the money manager of a 4 million

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

Stock

Investment

Beta

A

$ 400,000

1.50

B

600,000

(0.50)

C

1,000,000

1.25

D

2,000,000

0.75

If the market's required rate of return is 14% and the risk-free rate is 6%, what is the fund's required rate of return?

Reference no: EM13575860

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