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3. Suppose you manage a $4 million fund that consists of four stocks with the following investments: Stock Investment Beta A $650,000 1.70 B 850,000

3. Suppose you manage a $4 million fund that consists of four stocks with the following investments: Stock Investment Beta A $650,000 1.70 B 850,000 -0.70 C 1,250,000 1.15 D 2,250,000 0.85 If the markets required rate of return is 12% and the risk-free rate is 4%, what is the funds required rate of return?

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