Question: Question 2 (1 point) Smith Inc. has an initial beta of 1 and initial required return of 10.2%. Market premium is 6%. Now, Smith Inc,

Question 2 (1 point) Smith Inc. has an initial beta of 1 and initial required return of 10.2%. Market premium is 6%. Now, Smith Inc, acquires risky assets that causes its beta to increase by 15%. Then, an inflation rate will add additional bf 1.1%. What is the stock's new required rate of return? 1) 12.20% 2 14.03% 31 13.08% 4 10.13%

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