Check My Work o o Click here to read the eBook: The Relationship Between Risk and Rates of Return o o Problem Walk-Through CAPM AND REQUIRED RETURN Calculate the required rate of return for Mudd Enterprises assuming that investors expect a 3.3% rate of inflation in the future. The real risk-free rate is 1.5%, and the market risk premium is 3%. Mudd has a beta of 2.2, and its realized rate of return has averaged 10% over the past 5 years. Round your answer to two decimal places