Question: 11. Problem 8.11 (CAPM and Required Return) Calculate the required rate of return for Mudd Enterprises assuming that investors expect a 3.6% rate of Inflation

11. Problem 8.11 (CAPM and Required Return) Calculate the required rate

11. Problem 8.11 (CAPM and Required Return) Calculate the required rate of return for Mudd Enterprises assuming that investors expect a 3.6% rate of Inflation in the future. The real risk-free rate is 1.0%, and the market risk premium is 7.0%. Mudd has a beta of 2.1, and its realized rate of return has averaged 15.0% over the past 5 years. Round your answer to two decimal places

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