You have the following information:

	t1	t2	t3	t4
PEP Returns	0.02	0.09	-0.05	-0.03
Market Returns	-0.05	0	0.04	-0.09

Assume the risk-free rate is 4% and the historical market risk premium is 6%.

What is the rate of return required by investors of PEP?

Type your answer as percentage and not as decimal (i.e. 5.2% and not 0.052).

Round your answer to the nearest four decimals if needed.