Suppose you are the money manager of a $5.01 million investment fund.

The fund consists of four stocks with the following investments and betas:

Stock Investment Beta

A $ 260,000 1.50

B 560,000 (0.50)

C 1,340,000 1.25

D 2,850,000 0.75

If the market's required rate of return is 8% and the risk-free rate is 3%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places.