Calculate the required rate of return for Mudd Enterprises assuming that investors expect a 4.9% rate of inflation in the future. The real risk-free rate is 1.0%, and the market risk premium is 8.0%. Mudd has a beta of 2.4 , and its realized rate of return has averaged 10.5% over the past 5 years. Round your answer to two decimal places. Suppose you held a diversified portfolio consisting of a $7,500 investment in each of 20 different common stocks. The portfolio's beta is 2.25. Now suppose you decided to sell one of the stocks in your portfolio with a beta of 1.0 for $7,500 and use the proceeds to buy another stock with a beta of 0.60 . What would your portfolio's new beta be? Do not round intermediate calculations. Round your answer to two decimal places