Portfolio Required Return Suppose you manage a $4.4 million fund that consists of four stocks with the following investments: Stock Investment Beta A $500,000   1.50 B 650,000   -0.50 C 1,100,000   1.25 D 2,150,000   0.75 If the market's required rate of return is 8% and the risk-free rate is 3%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places.

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter2: Risk And Return: Part I
Section: Chapter Questions
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Portfolio Required Return

Suppose you manage a $4.4 million fund that consists of four stocks with the following investments:

Stock Investment Beta
A $500,000   1.50
B 650,000   -0.50
C 1,100,000   1.25
D 2,150,000   0.75

If the market's required rate of return is 8% and the risk-free rate is 3%, 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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