Global Investment Fund holds four stocks in A, B, C and D. The markets required rate of return is 13.25% and the risk-free rate is 7.00%. Calculate the required rate of return for the Global Investment Fund considering the following information: Total Investment for Stock A = RM 200,000, Stock As beta = 1.50; Total Investment for Stock B = RM300,000, Stock Bs beta = -0.50; Total Investment for Stock C = RM500,000, Stock Cs beta = 1.25; Total Investment for Stock D = RM1,000,000, Stock Ds beta = 0.75.

a.

10.62%

b.

10.09%

c.

11.77%

d.

11.18%