Homework answers / question archive / Calculate the required rate of return for Mudd Enterprises assuming that investors expect a 3

Calculate the required rate of return for Mudd Enterprises assuming that investors expect a 3

Finance

Share With

Calculate the required rate of return for Mudd Enterprises assuming that investors expect a 3.6% rate of inflation in the future. The real risk-free rate is 2.0%, and the market risk premium is 8.0%. Mudd has a beta of 1.5, and its realized rate of return has averaged 12.5% over the past 5 years. Round your answer to two decimal places.

  %