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CAPM AND REQUIRED RETURN Calculate the required rate of return for Mudd Enterprises assuming that investors expect a 3.2% rate of inflation in the future.
CAPM AND REQUIRED RETURN Calculate the required rate of return for Mudd Enterprises assuming that investors expect a 3.2% rate of inflation in the future. The real risk-free rate is 1%, and the market risk premium is 3%. Mudd has a beta of 1.7, and its realized rate of return has averaged 14.5% over the past 5 years. Round your answer to two decimal places
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