(Answered) David is the money manager of a r4000000 investment

Management Studies

David is the money manager of a R4,000,000 investment fund. The fund consists of four shares with the following investments and betas:

Share	Investment	Beta
A	R400,000	1,50
B	R600,000	-0,50
C	R1,000,000	1,25
D	R2,000,000	0,75

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

1. 6%

2. 8%

3. 12%

4. 14%

Please provide the answer and calculation, thanks so much.

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