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    ernests's Avatar
    ernests Posts: 1, Reputation: 1
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    #1

    Nov 6, 2009, 06:39 AM
    Calculate the rate of return
    Calculate the required rate of return for Mercury, Inc. assuming that investors expect a 5 percent rate of inflation
    In the future. The real risk-free rate is equal to 3 percent and the market risk premium is 5 percent. Mercury has a beta of 2.0, and its realized rate of return has averaged 15 percent over the last 5 years.
    ArcSine's Avatar
    ArcSine Posts: 969, Reputation: 106
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    #2

    Nov 6, 2009, 09:26 AM
    You've read the forum's homework help guidelines, amigo, so show your work and your thoughts on the solution. Assistance will follow.

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