4. Problem 8.07 (Portfolio Required Return) elbook Problem Walk-Through Suppose you are the money manager of a $4.44 milion investment fund. The fund consists of four stocks with the following investments and betas: Stock Investment Beta A $ 420.000 1.50 B 400,000 (0.50 1.120,000 1.25 D 2,500,000 0.75 If the market's required rate of retum 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 C Grade it Now Save & Continue Continue without saving Chen Mo 004 13002000027 ebook Problem Walk-Through Suppose you held a diversified portfolio consisting of a $7,500 investment in each of 20 different common stocks. The portfolio's beta is 0.95 Now suppose you decided to sell one of the stocks in your portfolio with a beta of 1.0 for $7,500 and use the proceeds to buy another stock with a beta of 1.70. What would your portfolio's new beta be? Do not round intermediate calculations, Round your answer to two decimal places 15.475%. The current risk free rate is 4%. Assume that you You have been managing a $5 million portfolio that has a bota of 1.35 and a required rate of return receive another $500,000. If you invest the money in a stock with a beta of 1.55, what will be the required return on your $5.5 million portfolio? Do not round intermediate calculations, Round your answer to two decimal places %