5. Problem 8.11 (CAPM and Required Return) eBook Problem Walk-Through Calculate the required rate of return for Mudd Enterprises assuming that investors expect a 4.9% rate of inflation in the future. The real risk-free rate is 1.5%, and the market risk premium is 6.5%. Mudd has a beta of 1.3, and its realized rate of return has averaged 13.0% over the past 5 years. Round your answer to two decimal places. %