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What is the fund required rate of return

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Reference no: EM132484185

Suppose you are the money manager of a $5.02 million investment fund. The fund consists of four stocks with the following investments and betas:

Stock. Investment. Beta

A. $260,000 1.50

B $800,000 (0.50)

C $1,260,000 1.25

D $2,700,000 0.75

If the market's required rate of return is 11% 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: EM132484185

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