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Questions Problem 8.11 (CAPM and Required Return) Question of 11 1. Check My Work (a remaining 2 2. o 3. La 4. eBook Problem Walk-Through

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Questions Problem 8.11 (CAPM and Required Return) Question of 11 1. Check My Work (a remaining 2 2. o 3. La 4. eBook Problem Walk-Through Calculate the required rate of return for Mudd Enterprises assuming that investors expect a 6.4% rate of inflation in the future. The real risk-free orate is 2.0%, and the market risk premium is 5.0%, Mudd has a beta of 1.4, and its realized rate of return has averaged 12.5% over the past 5 years. Round your answer to two decimal places. 5. 5 6. 6 7. 8. 9. . 10

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