Question: 6. Problem 8.11 (CAPM and Required Return) Calculate the required rate of return for Mudd Enterprises assuming that investors expect a 3.7% rate of inflation

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

6. Problem 8.11 (CAPM and Required Return) Calculate the required rate of return for Mudd Enterprises assuming that investors expect a 3.7% rate of inflation in the future. The real risk-free rate 1.0%, and the market risk premium is 7.0%. Mudd has a beta of 2.8, and its realized rate of return has averaged 10.0% over the past 5 years. Round your answer to two decimal places. %

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