What is the funds required rate of return

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Reference no: EM132012907

Suppose you are the money manager of a $4.83 million investment fund. The fund consists of four stocks with the following investments and betas:

Stock Investment Beta
A $   500,000                                 1.50
B 660,000                                 - 0.50
C 1,420,000                                 1.25
D 2,250,000                                 0.75

If the market's required rate of return is 12% and the risk-free rate is 3%, what is the fund's required rate of return?

Do not round intermediate calculations. Round your answer to two decimal places.

Reference no: EM132012907

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