How should this be solved?
What is the required rate of return for ABC, Inc if investors expect a 5% rate of inflation in the future? ABC has a beta of 2 and the company's realized rate of return has averaged 15% over the last 5 years. The real risk free rate is 3% and the market risk premium is 5%.© BrainMass Inc. brainmass.com June 3, 2020, 6:31 pm ad1c9bdddf
Required rate of return is examined.