Quantitative Problem: You are given the following information for Wine and Cork Enterprises (WCE): rRF = 3%;...

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

rRF = 3%; rM = 7%; RPM = 4%,and beta = 1.4

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

If inflation increases by 3% but there is no change ininvestors' risk aversion, what is WCE's required rate of returnnow? Round your answer to two decimal places. Do not roundintermediate calculations.
%

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

If inflation increases by 3% and risk aversion increases by 2%,what is WCE's required rate of return now? Round your answer to twodecimal places. Do not round intermediate calculations.
%

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Quantitative Problem: You are given thefollowing information for Wine and Cork Enterprises (WCE):rRF = 3%; rM = 7%; RPM = 4%,and beta = 1.4What is WCE's required rate of return? Round your answer to 2decimal places. Do not round intermediate calculations.%If inflation increases by 3% but there is no change ininvestors' risk aversion, what is WCE's required rate of returnnow? Round your answer to two decimal places. Do not roundintermediate calculations.%Assume now that there is no change in inflation, but riskaversion increases by 2%. What is WCE's required rate of returnnow? Round your answer to two decimal places. Do not roundintermediate calculations.%If inflation increases by 3% and risk aversion increases by 2%,what is WCE's required rate of return now? Round your answer to twodecimal places. Do not round intermediate calculations.%

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