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Attempts:                 Keep the Highest:    / 1 6.  Problem 8.07 (Portfolio Required Return) eBook Problem Walk-Through Suppose...

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          Keep the Highest:   

/ 1

6.  Problem 8.07 (Portfolio Required Return)

eBook Problem Walk-Through

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 $   320,000                                 1.50
B 620,000                                 (0.50)
C 1,180,000                                 1.25
D 2,850,000                                 0.75

If the market's required rate of return is 10% 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.

_____ %

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