What is the fund required rate of return

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Question - Suppose you are the money manager of a $4.88 million investment fund. The fund consists of four stocks with the following investments and betas:

Stock

Investment

Beta

A

$420,000

1.50

B

620,000

(0.50)

C

1,340,000

1.25

D

2,500,000

0.75

If the market's required rate of return is 13% 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: EM132178173

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