Question: Hi there - I need a little help with the following problem. Thanks! You are the money manager of a $10 million investment fund, which

Hi there - I need a little help with the following problem. Thanks!

You are the money manager of a $10 million investment fund, which consists of four stocks. This fund has the following investments and betas:

Stock Investment Beta
A $3,000,000 1.50
B $1,000,000 (0.50)
C $2,000,000 1.25
D $4,000,000 0.75

If the market's required rate of return is 12 percent, and the risk-free rate is 4 percent, what is the fund's required rate of return?

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