Suppose you manage a $5 million fund that consists of four stocks with the following...
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Finance
Suppose you manage a $5 million fund that consists of four stocks with the following investments:
| Stock | Investment | Beta |
| A | 250,000 | 1.50 |
| B | 1,000,000 | -0.50 |
| C | 1,750,000 | 1.25 |
| D | 2,000,000 | 0.75 |
If the market's required rate of return is 14% and the risk-free rate is 7%, 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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