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CAPM AND REQUIRED RETURN Calculate the required rate of return for Mudd Enterprises assuming that...

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Finance

CAPM AND REQUIRED RETURN

Calculate the required rate of return for Mudd Enterprises assuming that investors expect a 3.4% rate of inflation in the future. The real risk-free rate is 2%, and the market risk premium is 4.5%. Mudd has a beta of 2.8, and its realized rate of return has averaged 15% over the past 5 years. Round your answer to two decimal places.

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