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Assume that you are the portfolio manager of the DeSoto Fund, a $6.5 million mutual fund that contains the following stocks: me Stock A B

Assume that you are the portfolio manager of the DeSoto Fund, a $6.5 million mutual fund that contains the following stocks: me Stock A B FAC Amount $2,500,000 $1,750,000 $1,500,000 Beta 0.85 1.15 5 1.35 1.10 D$750,000 The required rate of return in the market is 11.25% and the risk-free rate is 3.25%. What rate of return should investors require on their investment in this fund

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