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John is the manager of a $ 5 0 million investment fund. The fund consists of five stocks with the following investments and betas: Stock

John is the manager of a $50 million investment fund. The fund consists of five stocks with the following investments and betas:
Stock Investment (in million $) Beta
A $17.50.96
B $12.52.14
C $ 7.51.20
D $10.00
E $ 2.51.87
If the risk-free rate is 4.2% and the markets required rate of return is 9.8%, what is the investment funds required rate of return? (Hint: find the portfolio beta first and then apply the CAPM formula)

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