Calculate the required rate of return for mudd enterprises

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Calculate the required rate of return for Mudd Enterprises assuming that investors expect an average 3.0% rate of inflation in the future. The real risk-free rate is 1.0%. The required rate of return on an average stock is 9.0%. Mudd has a beta of 1.5, and its realized rate of return has averaged 8.5% over the past 5 years.

Reference no: EM132657198

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