Question: MetaQuantitative Problem: You are given the following information for Wine and Cork Enterprises ( WCE ) : rRF = 4 % ; rM = 1

MetaQuantitative Problem: You are given the following information for Wine and Cork Enterprises (WCE):
rRF =4%; rM =10%; RPM =6%, 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 inflation 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 aversion increases by 2%. 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 increases by 2%, what is WCE's required rate of return now? Do not round intermediate calculations. Round your answer to two decimal places.

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