You manage the following $5 million portfolio that contains stocks A through D. The required rate of return on the market is 7.00% and the risk-free rate is 2.25%. What is the portfolio's required rate of return? Do not round your intermediate calculations.

Stock Amount Beta

A 725,000 1.00

B 275,000 0.55

C 3,500,000 1.35

D 500,000 0.80

----------------

$5,000,000

a. 8.02% b. 11.20% c. 9.44% d. 7.95% e. 8.49%