I'm confused about this one.... Portfolio Required Return Suppose you manage a $4.6 million fund that...

I'm confused about this one....

Portfolio Required Return

Suppose you manage a $4.6 million fund that consists of four stocks with the following investments:

Stock	Investment	Beta
A	$500,000	1.50
B	350,000	-0.50
C	900,000	1.25
D	2,850,000	0.75

If the market's required rate of return is 9% 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.

Expert Solution

jeff jeffy answered 1 year ago

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