Question: Could you show me how to work this problem? I am having trouble with the 2% increase in inflation. If rRF= 5%, rM= 11%, and

Could you show me how to work this problem? I am having trouble with the 2% increase in inflation.

If rRF= 5%, rM= 11%, and b = 1.3 for Stock X, what would rXbe if investors expected the inflation rate to increase by 2 percentage points? Assume that investors' risk aversion has not changed.

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