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Calculate the required rate of return for Mercury Inc., assuming that investors expect a 5 percent rate of inflation in the future. The real risk-free
Calculate the required rate of return for Mercury Inc., assuming that investors expect a 5 percent rate of inflation in the future. The real risk-free rate is equal to 3 percent and the market risk premium is 5 percent. Mercury has a beta of 3.0, and its realized rate of return has averaged 15 percent over the last 5 years. Select one: a. 23% b. 15% c. 17% d. 18% e. 20%
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