Quantitative Problem: You are given the following information for Wine and Cork Enterprises (WCE): 3%; ™M = 10%; RPM 7%,
Posted: Fri Jul 01, 2022 7:36 am
Quantitative Problem: You are given the following information for Wine and Cork Enterprises (WCE): 3%; ™M = 10%; RPM 7%, and beta = 1.2 What is WCE's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places. TRF = % If inflation increases by 3% 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 2%. What is WCE's required rate of return now? Do not round intermediate calculations. Round y answer to two decimal places. % If inflation increases by 3% 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. %