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Calculate the required rate of return for Mudd Enterprises assuming that investors expect a 3.7% rate of inflation in the future. The real risk-free rate

Calculate the required rate of return for Mudd Enterprises assuming that investors expect a 3.7% 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 1.8, and its realized rate of return has averaged 14.0% over the past 5 years. Round your answer to two decimal places.

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