Suppose you are the money manager of a $5.38 million investment fund. the fund consists of four stocks with the following investments and betas: stock investment beta a $ 440,000 1.50 b 800,000 (0.50 ) c 1,540,000 1.25 d 2,600,000 0.75 if the market's required rate of return is 10% and the risk-free rate is 6%, what is the fund's required rate of return? do not round intermediate calculations. round your answer to two decimal places.

On january 2, well co. purchased 10% of rea, inc.’s outstanding common shares for $400,000, which equaled the carrying amount and the fair value of the interest purchased in rea’s net assets. well did not elect the fair value option. because well is the largest single shareholder in rea, and well’s officers are a majority on rea’s board of directors, well exercises significant influence over rea. rea reported net income of $500,000 for the year and paid dividends of $150,000. in its december 31 balance sheet, what amount should well report as investment in rea?