Bill Gates Corporation is a holding company with four main subsidiaries. The percentage of its business coming from each of the subsidiaries, and their respective betas, are as follows: \begin{tabular}{|l|c|c|c|c|c} \hline SUBSIDIARY & BETA & PERCENTAGE OF BUSINESS (a) & & PERCENTAGE OF BUSINESS (e) & \\ \hline Software & 1.5 & 40% & & & \\ \hline Hardware & 1.2 & 30% & & & \\ \hline Outerwear & 0.9 & 10% & & & \\ \hline Underwear & 0.5 & 20% & & & \\ \hline \multicolumn{3}{c|}{ Beta estimate =} & New Beta = \\ \hline \end{tabular} a. What is the holding company's beta? Beta estimate = 0.00 b. Assume that the risk-free rate is 5 percent and the market risk premium is 8.0 percent. What is the Software subsidiary company's required rate of return? Required return = c. What would the Software subsidiary company's required rate of return be if inflation expectations increased by 3% ? Required return =