Suppose you are the money manager of a $4.62 million investment fund. The fund consists of four stocks with the following investments and betas: Stock Beta A 1.50 Investment $ 260,000 400,000 1,560,000 B (0.50) 1.25 D 2,400,000 0.75 If the market's required rate of return is 8% and the risk-free rate is 4%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places. % Beale Manufacturing Company has a beta of 1.6, and Foley Industries has a beta of 0.30. The required return on an index fund that holds the entire stock market is 12%. The risk-free rate of interest is 4.5%. By how much does Beale's required return exceed Foley's required return? Do not round intermediate calculations. Round your answer to two decimal places. % Suppose you held a diversified portfolio consisting of a $7,500 investment in each of 20 different common stocks. The portfolio's beta is 1.95. Now suppose you decided to sell one of the stocks in your portfolio with a beta of 1.0 for $7,500 and use the proceeds to buy another stock with a beta of 0.60. What would your portfolio's new beta be? Do not round intermediate calculations. Round your answer to two decimal places. HR Industries (HRI) has a beta of 1.5; LR Industries's (LRI) beta is 0.8. The risk-free rate is 6%, and the required rate of return on an average stock is 13%. The expected rate of inflation built into TRF falls by 1.5 percentage points, the real risk-free rate remains constant, the required return on the market falls to 10.5%, and all betas remain constant. After all of these changes, what will be the difference in the required returns for HRI and LRI? Do not round intermediate calculations. Round you answer to two decimal places. %