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Calculate the required rate of return for mercury inc

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Reference no: EM132821094

Problem 1: Calculate the required rate of return for Mercury Inc. to the nearest

1. Assume that investors expect a 3.5 percent rate of inflation in the future. The real risk-free rate is equal to 2.1 percent and the market risk premium is 5.3 percent. Mercury has a beta of 1.3 , and its realized rate of return has averaged 15.7 percent over the last 5 years.

Reference no: EM132821094

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