Question: Suppose you manage a $4 million fund that consists of four stocks with the following investments: If the market's required rate of return is 14%

Suppose you manage a $4 million fund that consists of four stocks with the following investments:

Stock Investment Beta S 400,000 1.50 600,000 -0.50 1,000,000 1.25 2,000,000 0.75

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

Stock Investment Beta S 400,000 1.50 600,000 -0.50 1,000,000 1.25 2,000,000 0.75

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