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9) You have been promoted as Senior Portfolio Manager of Lily Pension Fund, which has a current value of $3 million. The fund contains the

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9) You have been promoted as Senior Portfolio Manager of Lily Pension Fund, which has a current value of $3 million. The fund contains the following stocks. Stock A B D Amount $1,075,000 675,000 750,000 500,000 Beta 1.20 0.50 1.40 0.75 The required rate of return on the market is 11.00% and the risk-free rate is 5.00%. What is the expected rate of return on this fund? (3)

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