Question: Problem 6-10 Portfolio Required Return Suppose you manage a $5.375 million fund that consists of four stocks with the following investments: Stock Investment Beta A

Problem 6-10 Portfolio Required Return

Suppose you manage a $5.375 million fund that consists of four stocks with the following investments:

Stock Investment Beta
A $480,000 1.50
B 675,000 -0.50
C 1,420,000 1.25
D 2,800,000 0.75

If the market's required rate of return is 8% 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.

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