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4. Oakdale Inc. has a beta coefficient of 0.9 and a required rate of return of 15 percent. The market risk premium is currently

4. Oakdale Inc. has a beta coefficient of 0.9 and a required rate of return of 15 percent. The market risk premium is currently 6 percent. If the inflation premium increases by 2 percentage points, and Oakdale acquires new assets which increase its beta by 61 percent, what will be Oakdale's new required rate of return? 5. If a stock has a beta coefficient, b, equal to 1.6, the risk premium associated with the market is 9 percent, and the risk- free rate is 6.4 percent, application of the capital asset pricing model indicates the appropriate return should be:

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