Capm-required return-calculate the required rate of retun

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CAPM and required return Calculate the required rate of return for Mudd Enterprises assuming that investors expect a 4.5% rate of inflation in the future. The real risk-free rate is 1.75%, and the market risk premium is 6%. Mudd has a beta of 1.2, and its realized rate of return has averaged 12.5% over the past 5 years. Round your answer to two decimal places. %________

Reference no: EM131303488

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