What is the fund required rate of return

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Suppose you are the money manager of a $4.97 million investment fund.

The fund consists of four stocks with the following investments and betas:

Stock Investment Beta A $ 240,000 1.50 B 520,000 (0.50) C 1,260,000 1.25 D 2,950,000 0.75

If the market's required rate of return is 12% and the risk-free rate is 5%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places.

Reference no: EM132654509

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