Quantitative Problem: You are given the following information for Wine and Cork Enterprises (WCE): r = 5%; r = 9%; RP = 4%, and beta = 1 What is WCE's required rate of return? Round your answer to 2...


Quantitative Problem: You are given the following information for Wine and Cork Enterprises (WCE):
r = 5%; r = 9%; RP = 4%, 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 2% 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 1%. 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 2% and risk aversion increases by 1%, what is WCE's required rate of return now? Round your answer to two decimal places. Do not round
intermediate calculations.



Jun 10, 2022
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