CH .08 Q4 and Q3

Quantitative Problem: You are given the following information for Wine and Cork Enterprises (WCE): TPG=5%;TM=7%;FPM=2%, and beta =1.4 What is WCE's required rate of return? Do not round intermediate calculations, Round your answer to two decimal places. % If infllation increases by 1% but there is no change in investors' risk aversion, what is wCE's required rate of return now? Do not round intermediate calculations. Round your answer to two decimal places. % Assume now that there is no change in inflation, but risk averiion increases by 256 . What is wCE's required rate of return now? Do not round intermediate calculations. Round your answer to two decimal places. If Inflation increases by 1% and risk aversion incteases by 2%, what is wCE's required rate of return now? Do not round intermediate calculations, Round your answer to two decimal places: Quantitative Problem: You are holding a portfolio with the following investments and betas: The market's required return is 9% and the risk-tree rate is 5%. What is the portfolio's required return? Do not round intermediate calculations. Round your answer to three decimal places