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Quantitative Problem: You are given the following information for Wine and Cork Enterprises (WCE): rRF = 2%; rM = 10%; RPM = 8%, and beta

Quantitative Problem: You are given the following information for Wine and Cork Enterprises (WCE): rRF = 2%; rM = 10%; RPM = 8%, and beta = 1.3 What is WCE's required rate of return? Round your answer to 2 decimal places. Do not round intermediate calculations 13.40 % Hide Feedback Incorrect Check My Work Feedback Review the SML equation to calculate the stock's required return. Be sure to follow the correct order of mathematical operations. If inflation increases by 2% but there is no change in investors' market risk premium, what is WCE's required rate of return now? Round your answer to two decimal places. Do not round intermediate calculations 15.40 % Hide Feedback Incorrect Check My Work Feedback Review the SML equation to calculate the stock's required return. Be sure to follow the correct order of mathematical operations. Remember the impact of inflation on the SML equation. Assume now that there is no change in inflation, but market risk premium increases by 1%. What is WCE's required rate of return now? Round your answer to two decimal places. Do not round intermediate calculations 14.70 % Hide Feedback Incorrect Check My Work Feedback Review the SML equation to calculate the stock's required return. Be sure to follow the correct order of mathematical operations. Remember the impact of risk aversion on the SML equation. If inflation increases by 2% and market risk premium increases by 1%, what is WCE's required rate of return now? Round your answer to two decimal places. Do not round intermediate calculations 18.00 % Hide Feedback Incorrect Check My Work Feedback Review the SML equation to calculate the stock's required return. Be sure to follow the correct order of mathematical operations. Remember the impact of both inflation and risk aversion on the SML.

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