#4. Suppose you manage a $4 million fund that consists of four stocks with the following investments:
Stock Investment Beta
A $400,000 1.50
B $600,000 -0.50
C $1,000,000 1.25
D $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?