Calculate the required rate of return for Mercury inc, assuming that investors expect a 1.6 percent rate of inflation in the future. The real risk-free rate is equal to 4.2 percent and the market risk premium is 5.3 percent. Mercury has a beta of 1.3 , and its realized rate of return has averaged 14 percent over the last 5 years. 14.19% 13.19% 14.69% 12.699 13.69%