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2. Stacy is the manager of a RM10 million mutual fund and he decides to invest in the three stocks with the following amounts and

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2. Stacy is the manager of a RM10 million mutual fund and he decides to invest in the three stocks with the following amounts and betas.) Stock Invested amount RM (million) Beta 0.8 0.6 If the market's required rate of return is 12%, and the risk-free rate is 4%, what is the mutual fund's required rate of return? 16 marks]

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