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Calculate the required rate of return for Mercury Inc., assuming that investors expect a 1.4 percent rate of inflation in the future. The real risk-free

image text in transcribed Calculate the required rate of return for Mercury Inc., assuming that investors expect a 1.4 percent rate of inflation in the future. The real risk-free rate is equal to 3.9 percent and the market risk premium is 4.4 percent. Mercury has a beta of 0.5 , and its realized rate of return has averaged 12 percent over the last 5 years. Question 3 1 pts Given the following probability distribution, what are the expected return and the standard deviation of returns for Security J? 6.90%;5.71% 7.90%;5.11% 6.40%;6.01% 7.40%;4.81% 8.40%;5.41%

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