What is the fund required rate of return

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Reference no: EM132053159

Suppose you are the money manager of a $4.81 million investment fund. The fund consists of four stocks with the following investments and betas:

Stock Investment Beta

A $ 260,000 1.50

B 600,000 (0.50)

C 1,100,000 1.25

D 2,850,000 0.75

If the market's required rate of return is 12% and the risk-free rate is 4%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places.

Reference no: EM132053159

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