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Calculate the required rate of return for Food Inc., assuming that (1) investors expect a 2.0% rate of inflation in the future, (2) the nominal
Calculate the required rate of return for Food Inc., assuming that (1) investors expect a 2.0% rate of inflation in the future, (2) the nominal risk-free rate is 6%, (3) the market portfolio return is 8%, (4) the firm has a beta of 1.20, and (5) its realized rate of return has averaged 11.0% over the last 3 years.
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