Question: 6. Problem 8.11 (CAPM and Required Return) eBook 11 Problem Walk-Through Calculate the required rate of return for Mudd Enterprises assuming that investors expect a

6. Problem 8.11 (CAPM and Required Return) eBook 11 Problem Walk-Through Calculate the required rate of return for Mudd Enterprises assuming that investors expect a 4.8% rate of inflation in the future. The real risk.free rate is 2.0%, and the market risk premium is 7.0%. Mudd has a beta of 2.4, and its realized rate of return has averaged 14.5% over the past 5 years. Round your answer to two decimal places %

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