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    What you need to know about Required Rate of return

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    The real risk-free rate is 2.00%, investors expect a 3.00% future inflation rate, the market risk premium is 4.70%, and Kohers Enterprises has a beta of 1.10. What is the required rate of return on Kohers' stock?

    a. 9.43%
    b. 9.67%
    c. 9.92%
    d. 10.17%
    e. 10.42%

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    Solution Summary

    The solution explains how to determine the required rate of return on the given stock