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Portfolio Required Return

Suppose you manage a $5.305 million fund that consists of four stocks with the following investments:
Stock Investment Beta
A $440,000 1.50
B 575,000 -0.50
C 1,340,000 1.25
D 2,950,000 0.75

If the market's required rate of return is 13% and the risk-free rate is 7%, what is the fund's required rate of return? Round your answer to two decimal places.

 

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