A money manager is holding the following portfolio:

The risk-free rate is 4 percent and market risk premium is 6 percent. What would be the portfolios required rate of return?

Select one:

a. 10.00%

b. 11.20%

c. 11.80%

d. 12.40%

e. 13.60%

Stock Amount Invested $300,000 300,000 500,000 500,000 Beta 0.6 1.0 1.4 1.8 2 3