Suppose you are the money manager of a $5.18 million investment fund. The fund consists of four stocks with the following investments and betas:

Stock

Investment

Beta

A

B

$ 340,000

700,000

1,140,000

1.50

(0.50)

1.25

D

3,000,000

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.