If both buyers and sellers expect the price of a commodity to fall in the future, it is likely that the market clearing price and the equilibrium quantity . will rise, cannot be predicted will fall, cannot be predicted cannot be predicted, will fall cannot be predicted, will rise

Mikkelson corporation's stock had a required return of 12.50% last year, when the risk-free rate was 3% and the market risk premium was 4.75%. then an increase in investor risk aversion caused the market risk premium to rise by 2%. the risk-free rate and the firm's beta remain unchanged. what is the company's new required rate of return? (hint: first calculate the beta, then find the required return.) do not round your intermediate calculations.