What is the fund required rate of return

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Reference no: EM132001231

Suppose you are the money manager of a $4.82 million investment fund. The fund consists of 4 stocks with the following investments and betas:

Stock Investment Beta

A $ 340,000 1.50

B 380,000 - 0.50

C 1,300,000 1.25

D 2,800,000 0.75

If the market's required rate of return is 10% and the risk-free rate is 6%, what is the fund's required rate of return? Round your answer to two decimal places.

Reference no: EM132001231

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