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PORTFOLIO REQUIRED RETURN

Suppose you are the money manager of a $4.14 million investment fund. The fund consists of four stocks with the following investments and betas:

Stock Investment Beta

A $   200,000                                 1.50

B 520,000                                 (0.50)

C 1,220,000                                 1.25

D 2,200,000                                 0.75

If the market's required rate of return is 12% and the risk-free rate is 6%, 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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