PORTFOLIO REQUIRED RETURN

Suppose you are the money manager of a $4.3 million investment fund. The fund consists of four stocks with the following investments and betas:

Stock                                             Investment                                      Beta

A                                                    $   500,000                                        1.50

B                                                        500,000                                        (0.50)

C                                                      1,500,000                                        1.25

D                                                       1,800,000                                        0.75

If the market’s required rate of return is 13% and the risk-free rate is 3%, what is the fund’s required rate of return? Do not round intermediate calculations. Round your answer to two decimal places.