Ch $08-$End$-$of$-$Chapter Problems $-$ Risk and Rates of Return

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Keep the Highest $\frac{0}{1}$

Problem $8\mathrm{.}07($Portfolio Required Return$)$

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Suppose you are the money manager of a $$5\mathrm{.}12$ million investment fund. The fund consists of four stocks with the following investments and betas:

If the market's required rate of return is $11\%$ and the risk$-$free rate is $5\%,$ 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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