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Suppose you manage a $4.61 million fund that consists of four stocks with the following investments:

Stock Investment Beta
A $300,000 1.50
B 700,000 -0.50
C 1,060,000 1.25
D 2,550,000 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? Round your answer to two decimal places.

 

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