Question: Smith Inc. has an initial beta of 1 and initial required return of 10.2%. Market risk premium is 6%. Now, Smith Inc. acquires risky assets

Smith Inc. has an initial beta of 1 and initial required return of 10.2%. Market risk premium is 6%. Now, Smith Inc. acquires risky assets that causes its beta to increase by 15%. Then, an inflation rate will add additional of 1.1%. What is the stock's new required rate of return

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