Question: 5. 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

5. Problem 8.11 (CAPM and Required Return)

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

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 1.5%, and the market risk premium is 7.0%. Mudd has a beta of 1.3 , and its realized rate of return has averaged 14.5% over the past 5 years. Round your answer to two decimal %

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