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

Suppose you are the money manager of a $4 million investment fund. The fund consists of fours stocks with the following investments and beta: Stock A B C D Investment $400,000 600,000 1,000,000 2,000,000 Beta 1.50 (0.50) 1.25 0.75 What is portfolio beta (p)? If market required rate of return is 14% and risk-free rate is 6%, what is the fund's required rate of return (rp)?

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