$7.$ Problem $6-10($Portfolio Required Return$)$

eBook Problem Walk$-$Through

Portfolio Required Return

Suppose you manage a $$2$ million fund that consists of four stocks with the following investments:

Stock Investment Beta

A $$200,0001\mathrm{.}50$

B $400,000-0\mathrm{.}50$

C $700,0001\mathrm{.}25$

D $700,0000\mathrm{.}75$

If the market's required rate of return is $17\%$ and the risk$-$free rate is $7\%,$ what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places.