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Calculate the required rate of return for Hope Inc., assuming that (1) investors expect a 2.0% rate of inflation in the future, (2) the real

Calculate the required rate of return for Hope Inc., assuming that (1) investors expect a 2.0% rate of inflation in the future, (2) the real risk-free rate is 3.5%, (3) the market return on S&P 500 Index is 8.5%, (4) the firm has a beta of 1.5, and (5) its realized rate of return has averaged 10.0% over the last 5 years.

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