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Calculate the required rate of return for Mercury Inc., assuming that investors expect a 5% rate of inflation in the future. The real risk-free rate...

Calculate the required rate of return for Mercury Inc., assuming that investors expect a 5% rate of inflation in the future. The real risk-free rate is 3% and the market risk premium is 5%. Mercury has a beta of 2.0, and its realized rate of return has averaged 15% over the last 5 years. which is the procedure?
a. 18%
b. 20%
c. 15%
d. 17%
e. 16%

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