calculate the nominal required rate of return for mercury inc ,assuming that inv
ID: 2650153 • Letter: C
Question
calculate the nominal required rate of return for mercury inc ,assuming that investors expect a 0.7% rate of inflation in the future.the real risk rate is equal to1.0% and the market risk premium is 4.8% .mercury has a beta of1.5. Mercury's realized rate of return has averaged 8.2% over the last 5years show your answer as a whole number to the nearest .1%calculate the nominal required rate of return for mercury inc ,assuming that investors expect a 0.7% rate of inflation in the future.the real risk rate is equal to1.0% and the market risk premium is 4.8% .mercury has a beta of1.5. Mercury's realized rate of return has averaged 8.2% over the last 5years show your answer as a whole number to the nearest .1%
calculate the nominal required rate of return for mercury inc ,assuming that investors expect a 0.7% rate of inflation in the future.the real risk rate is equal to1.0% and the market risk premium is 4.8% .mercury has a beta of1.5. Mercury's realized rate of return has averaged 8.2% over the last 5years show your answer as a whole number to the nearest .1%
Explanation / Answer
Normal Rate of return = Real rate + Rate of inflation Normal Rate of return = .7% + 1% Normal Rate of return = 1.7%
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