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

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Suppose you are the money manager of a $ 4 million investment fund, The investment fund consists of 4 stocks with the following investments and betas: Stock Beta Investment $400,000 A 1.50 B 600,000 -0.50 (note: this is a negative beta) C 1.20 1,000,000 2,000,000 D 0.75 If the market required rates of return is 14 percent and the risk free rate is 6 percent, what is the fund's required rate of return? 12% 15% 14%

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