Suppose you are a money manager of a $4.82 million investment fund. The fund consists of four stocks with the following investments and betas:

STOCK

INVESTMENT

BETA

A

$460,000

1.50

B

$500,000

(.50)

C

$1,260,000

1.25

D

$2,600,000

0.75

If the markets required rate of return is 8%, and the risk-free rate is 4%. What is the funds required rate of return?