Question: Quantitative Problem: You are given the following information for Wine and Cork Enterprises (WCE): Por = 3%; H 9%; RP 6%, and beta 1.2 What
Quantitative Problem: You are given the following information for Wine and Cork Enterprises (WCE): Por = 3%; H 9%; RP 6%, and beta 1.2 What is WCE's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places. If inflation increases by 3% but there is no change in investors' risk a version, 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 3% 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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