Suppose you are the money manager of a $4.88 million investment fund. The fund consists of four stocks with the following investments and betas:
Stock | Investment | Beta
------- | -------- | --------
A | $440,000 | 1.50
B | $400,000 | (0.50)
C | $1,240,000 | 1.25
D | $2,800,000 | 0.75
If the market's required rate of return is 9% and the risk-free rate is 4%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places.