Quantitative Problem: You are given the following information for Wine and Cork Enterprises $($WCE$)$:

rRF $=2\%$; rM $=7\%$; RPM $=5\%,$ and beta $=1\mathrm{.}2$

What is WCE's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places.

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If inflation increases by $3\%$ but there is no change in investors' risk aversion, what is WCE's required rate of return now? Do not round intermediate calculations. Round your answer to two decimal places.

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Assume now that there is no change in inflation, but risk aversion increases by $1\%.$ What is WCE's required rate of return now? Do not round intermediate calculations. Round your answer to two decimal places.

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If inflation increases by $3\%$ and risk aversion increases by $1\%,$ what is WCE's required rate of return now? Do not round intermediate calculations. Round your answer to two decimal places.

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