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Suppose you are the money manager of a $4.78 million investment fund. The fund consists of four stocks with the following investments and betas: Stock.
Suppose you are the money manager of a $4.78 million investment fund. The fund consists of four stocks with the following investments and betas:
Stock. Investment Beta
A. $340,0001 .50
B. 400,000. (0.50)
C. 1,040,000. 1.25
D. 3,000,0000. .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.
%
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