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Kollo Enterprises has a beta of 1.02, the real risk-free rate is 2.00%, investors expect a 3.00% future inflation rate, and the market risk premium

Kollo Enterprises has a beta of 1.02, the real risk-free rate is 2.00%, investors expect a 3.00% future inflation rate, and the market risk premium is 4.70%. What is Kollo's required rate of return?Do not round your intermediate calculations.

  1. 9.11%
  2. 12.24%
  3. 8.91%
  4. 9.40%
  5. 9.79%

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