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You are given the following information for Wine and Cork Enterprises (WCE): rRF = 5%; rM = 7%; RPM = 2%, and beta = 1.3 What is WCE's required rate of return? Do not round intermediate calculations

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

rRF = 5%; rM = 7%; RPM = 2%, and beta = 1.3

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

%

If inflation increases by 2% 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.

%

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.

%

If inflation increases by 2% 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.

%

Apr 13 2021 View more View Less

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