Question: Risk and Return: Security Market Line rRF = 5%; rM = 7%; RPM = 2%, and beta = 1.2 If inflation increases by 3% and

Risk and Return: Security Market Line

rRF = 5%; rM = 7%; RPM = 2%, and beta = 1.2

If inflation increases by 3% 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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