Suppose you are the money manager of a $4.07 million investment fund. The fund consists of four stocks with the following investments and betas:

Stock	Investment	Beta
A	$ 380,000	1.50
B	600,000	(0.50)
C	1,140,000	1.25
D	1,950,000	0.75

If the market's required rate of return is 12% and the risk-free rate is 6%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places.

Calculate the required rate of return for Mudd Enterprises assuming that investors expect a 3.9% rate of inflation in the future. The real risk-free rate is 2.0%, and the market risk premium is 5.0%. Mudd has a beta of 2.7, and its realized rate of return has averaged 13.0% over the past 5 years. Round your answer to two decimal places.