Calculate the required rate of return for Mudd Enterprises assuming that investors expect a 3.7% rate of inflation in the future. The real risk-free rate is 1.5%, and the market risk premium is 3.5%....

Calculate the required rate of return for Mudd Enterprises assuming that investors expect a 3.7% rate of inflation in the future. The real risk-free rate is 1.5%, and the market risk premium is 3.5%. Mudd has a beta of 2.0, and its realized rate of return has averaged 9.0% over the past 5 years. Round your answer to two decimal places.