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CAPM and required return

Calculate the required rate of return for Mudd Enterprises assuming that investors expect a 4.3% rate of inflation in the future. The real risk-free rate is 1.25%, and the market risk premium is 4.5%. Mudd has a beta of 2, and its realized rate of return has averaged 9.5% over the past 5 years. Round your answer to two decimal places.

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Financial Management, Finance

Category:- Financial Management
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