What is wces required rate of return now

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Quantitative Problem: You are given the following information for Wine and Cork Enterprises (WCE):

rRF = 2%; rM = 9%; RPM = 7%, and beta = 1.4

What is WCE's required rate of return? Round your answer to 2 decimal places. Do not round intermediate calculations.

_________%

If inflation increases by 1% but there is no change in investors' risk aversion, what is WCE's required rate of return now? Round your answer to two decimal places. Do not round intermediate calculations.

_________%

Assume now that there is no change in inflation, but risk aversion increases by 2%. What is WCE's required rate of return now? Round your answer to two decimal places. Do not round intermediate calculations.

__________%

If inflation increases by 1% and risk aversion increases by 2%, what is WCE's required rate of return now? Round your answer to two decimal places. Do not round intermediate calculations.

___________%

Reference no: EM132016794

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