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The stock of Pizza Hot Inc., a Mexican pizza chain, has an estimated beta of 1.9. Calculate the required rate of return on Pizza Hots

The stock of Pizza Hot Inc., a Mexican pizza chain, has an estimated beta of 1.9. Calculate the required rate of return on Pizza Hots stock if the SML is estimated as follows:

kj=0.07+0.096j

based on

An initial inflation expectation of 4 percent. Round your answer to one decimal place.

A new inflation expectation of 7 percent. Round your answer to one decimal place.

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