Consider the Following Information and Then Calculate the Required Rate $\begin{array}{lll}Stock&Investment&Beta\\A&\$ 200,000 & 1.50 \\B&\$ 300,000 & -0.50 \\C&\$ 500,000 & 1.25 \\D&\$ 1,000,000 & 0.75\end{array}$

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:
$\begin{array}{lll}Stock&Investment&Beta\\A&\$ 200,000 & 1.50 \\B&\$ 300,000 & -0.50 \\C&\$ 500,000 & 1.25 \\D&\$ 1,000,000 & 0.75\end{array}$

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

Correct Answer:

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