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

rRF = 5%; rM = 7%; RPM = 2%, and beta = 1.1

Part A. What is WCE's required rate of return? Round your answer to 2 decimal places. Do not round intermediate calculations. (%)

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

Part C. Assume now that there is no change in inflation, but risk aversion increases by 2%. What is WCE's required rate of return now? Round your answer to two decimal places. Do not round intermediate calculations. (%)

Part D. If inflation increases by 3% and risk aversion increases by 2%, what is WCE's required rate of return now? Round your answer to two decimal places. Do not round intermediate calculations. (%)