Market risk premium and real risk-free rate

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Calculate the required rate of return for Manning Enterprises assuming that investors expect a 4.3% rate of inflation in the future. The real risk-free rate is 1%, and the market risk premium is 4%. Manning has a beta of 1.9, and its realized rate of return has averaged 12.5% over the last 5 years. Round your answer to two decimal places.

Reference no: EM13769162

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