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

r_RF = 3%; r_M = 9%; RP_M = 6%, and beta = 1

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

_______ %

b. 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.

_______ %

c. 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.

_______ %

d. 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.

________ %