Calculate the required rate of return for Food Inc. Assuming that (1) investors expect a 2.0% rate of inflation in the future, (2) the real risk-free rate is 3.5%, (3) the market portfolio return is 7.5%, (4) the firm has a beta of 2.00, and (5) its realized rate of return has averaged 12.0% over the last 5 years. (Hint: You will need to get the market premium first in the CAPM model).
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