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Calculate the required rate of return for Aggies Enterprises assuming that investors expect a 4.6% rate of inflation in the future. The real risk-free rate is 3.3%, and the market risk premium is 7.1%. Aggie has a beta of 0.77, and its realized rate of return has averaged 13.2% over the past 5 years. You must show your work to receive full credit.

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Financial Management, Finance

Category:- Financial Management
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