Consider the Following Information and Then Calculate the Required Rate

Consider the following information and then calculate the required rate of return for the Universal Investment Fund,which holds 4 stocks.The market's required rate of return is 13.25%,the risk-free rate is 7.00%,and the Fund's assets are as follows: $$\begin{array} { c c r } \text { Stock } & \text { Investment } & \text { Beta } \\\text { A } & \$ 200,000 & 1.50 \\\text { B } & \$ 300,000 & - 0.50 \\\text { C } & \$ 500,000 & 1.25 \\\text { D } & \$ 1,000,000 & 0.75\end{array}$$

A) 9.58%
B) 10.09%
C) 10.62%
D) 11.18%
E) 11.77%

Correct Answer:

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