You are given the following information for Wine and CorkEnterprises (WCE):
rRF = 3%; rM = 10%;RPM = 7%, and beta = 1.2
What is WCE's required rate of return? Do not round intermediatecalculations. Round your answer to two decimal places.
%
If inflation increases by 3% but there is no change ininvestors' risk aversion, what is WCE's required rate of returnnow? Do not round intermediate calculations. Round your answer totwo decimal places.
%
Assume now that there is no change in inflation, but riskaversion increases by 1%. What is WCE's required rate of returnnow? Do not round intermediate calculations. Round your answer totwo decimal places.
%
If inflation increases by 3% and risk aversion increases by 1%,what is WCE's required rate of return now? Do not roundintermediate calculations. Round your answer to two decimalplaces.
%
You are given the following information for Wine and Cork Enterprises (WCE): rRF = 3%; rM = 10%; RPM = 7%, and beta = 1.
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