Problem 8-7 Portfolio required return

Suppose you are the money manager of a $4.84 million investment fund. The fund consists of 4 stocks with the following investments and betas:

Stock	Investment	Beta
A	$ 340,000	1.50
B	500,000	- 0.50
C	1,100,000	1.25
D	2,900,000	0.75

If the market's required rate of return is 13% and the risk-free rate is 3%, what is the fund's required rate of return? Round your answer to two decimal places. %