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Calculate the required rate of retum for Mudd Enterprises assuming that investors expect a 4.0% rate of inflation in the future. The real risk-free rate

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Calculate the required rate of retum for Mudd Enterprises assuming that investors expect a 4.0% rate of inflation in the future. The real risk-free rate is 1.0%, and the market risk premium is 5.5%. Mudd has a beta of 2.1, and its realized rate of return has averaged 8.0% over the past 5 years. Round your answer to two decimal places. 4

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