You are holding a portfolio with the following investments and betas:

$\backslash$table$[[$Stock$,$Dollar investment,Beta$],[$A$,$$$200,000,],[$B$,200,000,1\mathrm{.}25],[$C$,500,000,1\mathrm{.}70],[$D$,100,000,0\mathrm{.}85]]$

Total investment $$1,000,000$

The market's required return is $11\%$ and the risk$-$free rate is $4\%.$ What is the portfolio's required return? Do not round intermediate calculations. Round your answer to three decimal places.

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

$r_{RF}=3\%$;$r_M=10\%$;$RP{M}_M=7\%,$ and beta $=1\mathrm{.}3$

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

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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.

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

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If inflation increases by $1\%$ and risk aversion increases by $2\%,$ what is WCE's required rate of return now? Do not round intermediate calculations. Round your answer to two decimal places.

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