Kollo Enterprises has a beta of 0.70, the real risk-free rate is 2.00%, investors expect a 3.00% future inflation rate, and the market risk premium is 4.70%. What is Kollo's required rate of return? Do not round your intermediate calculations.
A. 7.96%
B. 7.30%
C. 6.47%
D. 6.96%
E. 8.29%
Answer: E
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