Calculate the required rate of return

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Reference no: EM131553748

Calculate the required rate of return for Mercury Inc assuming that investors expect a 5% rate of inflation in the future. The real risk free rate is equal to 3% and the market risk premium is 5%. Mercury has a beta of 2.0 and it has realized a rate of return averaging 15% over the last 5 years.

Reference no: EM131553748

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