What is the fund required rate of return

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Reference no: EM131997761

Suppose you are the money manager of a $4.56 million investment fund. The fund consists of four stocks with the following investments and betas:

Stock Investment Beta

A $ 440,000 1.50

B 560,000 (0.50)

C 1,260,000 1.25

D 2,300,000 0.75

If the market's required rate of return is 12% 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.

Reference no: EM131997761

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