Question: 2. If r RF = 4%, r M = 11%, and b = 1.3 for Rick Barr Properties stock, what would be the required rate

2. If rRF = 4%, rM = 11%, and b = 1.3 for Rick Barr Properties stock, what would be the required rate of return (r) for Rick Barr Properties stock if investors expected the inflation rate to increase by 2 percentage points? Assume that investors risk aversion has not changed. (Work needed)

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