Suppose you manage a $4.27 million fund that consists of four stocks with the following investments:

Stock	Investment		Beta
A	$400,000		1.50
B	700,000		-0.50
C	1,420,000		1.25
D	1,750,000		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.

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You have a $2 million portfolio consisting of a $100,000 investment in each of 20 different stocks. The portfolio has a beta of 0.95. You are considering selling $100,000 worth of one stock with a beta of 1 and using the proceeds to purchase another stock with a beta of 1.45. What will the portfolio's new beta be after these transactions? Do not round intermediate calculations. Round your answer to two decimal places

Stock R has a beta of 1.5, Stock S has a beta of 0.70, the expected rate of return on an average stock is 8%, and the risk-free rate is 7%. By how much does the required return on the riskier stock exceed that on the less risky stock? Round your answer to two decimal places.