Question: r RF = 5%; r M = 10%; RP M = 5%, and beta = 1.1 What is WCE's required rate of return? Do not

rRF = 5%; rM = 10%; RPM = 5%, and beta = 1.1

What is WCE's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places.

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If inflation increases by 3% 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 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 3% and risk aversion 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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