Quantitative Problem: You are given the following information for Wine and Cork Enterprises (WCE): rRF = 4%; rM = 7%; RPM = 3%, and beta = 1.1

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

___________%

If inflation increases by 1% 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.

___________%

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.

___________%

If inflation increases by 1% 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.

___________%