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Suntopia is an investment fund that consists of four stocks. In particular, the holdings consist of $100,000 invested in Risesun, $,100,000 invested in Setsun, $100,000
Suntopia is an investment fund that consists of four stocks. In particular, the holdings consist of $100,000 invested in Risesun, $,100,000 invested in Setsun, $100,000 invested in Sunmid, and $200,000 invested in Dropsun. Risesun has a beta of 1.4, Setsun has a beta of 0.4, Sunmid has a beta of 1.1, and Dropsun has a beta of 0.7. The market's required rate of return is 11% and the risk-free rate is 1.2%. What is the required rate of return (in percent) for Suntopia
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