Question: Suppose you are the money manager of a $4 million investment fund. The fund consists of 4 stocks with the following investments and betas: If

Suppose you are the money manager of a $4 million investment fund. The fund consists of 4 stocks with the following investments and betas:

If the market required rate of return is 14 percent and the risk-free rate is 6 percent, what is the fund's required rate of return?

Stock Investment Beta $ 400,000 1.50 A (0.50) 600,000 1,000,000 1.25 2,000,000 0.75

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