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

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

Stock A 400,000 beta 1.50

Stock B 60,000 beta (0.50)

Stock C 1,000,000 beta 1.25

Stock D 2,000,000 beta 0.75

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

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