Quantitative Problem:

You are holding a portfolio with the following investments and betas: Stock Dollar investment

Dollar investment: Beta:

A $300,000 1.35

B 150,000 1.60

C 500,000 0.85

D 50,000 -0.25

Total investment $1,000,000

The market's required return is 10% and the risk-free rate is 4%. What is the portfolio's required return? Do not round intermediate calculations. Round your answer to three decimal places.