Question: Question 1: Quantitative Problem: You are given the following information for Wine and Cork Enterprises (WCE): rRF=4%;rM=9%;RM=5%,andbeta=1.1 What is WCE's required rate of return? Do

Question 1:

Quantitative Problem: You are given the following information for Wine and Cork Enterprises (WCE): rRF=4%;rM=9%;RM=5%,andbeta=1.1 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' market risk premium, 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 market risk premium increases by 1%. 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 market risk premium increases by 1%, 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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