7. Problem 8.07 (Portfolle Required Return) Problem Wal-Through Surpose you are the money manager of a $4.96 million investment fund. The fund cons of four stocks with the following investments and bear Stock Investment Beta A $ 480,000 1.50 600,000 0.500 C 1,200,000 1.25 D 2,600,000 0.75 If the market's more rate of return is and the free rates, what the funds required rate of return? De round intermediate calculations, Round your answer to the decimal places 5. Problem 8.05 (Beta and Required Rate of Return) A stock has a required return of 12, the risk-free rate is 5.5, and the market risk premium 2. What is the stock's beta? Round your answer to two decimal places b. If the market is premium increased to 54, what would happen to the stock's required rate of return? Assume that the risk free rate and the beta remain unchanged. Do not found intermediate calculations. Round your answer to two decimal places 1. If the stocks beta is less than 10, then the change in required rate of return will be greater than the change in the market is premium 11. If the stock's bete is greater than 10, then the change in required rate of return will be less than the change in the market risk premium III. If the stock's but is equal to 1.0, then the change in required rate of return will be greater than the change in the market premium TV. If the stock's beta is equal to 1.0, then the change in required rate of return will be less than the change in the market nisk premium vif the stocks beta is greater than 1.0, then the change in required rate of return will be greater than the change in the market is premium Select Stock's required rate of return wil be