You are given the following information for Wine and Cork Enterprises (WCE):
rRF = 2%; rM = 7%; RPM = 5%, and beta = 1
What is WCE's required rate of return? Round your answer to 2 decimal places. Do not round intermediate calculations. %
If inflation increases by 3% 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 3% 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. %