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problem: Assume you are the money manager of a 4 million dollar investment fund. The fund consists of four stocks with the following investments & betas:

Stock

Investment

Beta

A

$400,000

1.50

B

600,000

-0.50

C

1,000,000

1.25

D

2,000,000

0.75

If the market required rate of return is 14% and the risk-free rate is 6%, find out the fund's required rate of return?

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