11. Changes te the security market line (Hic). based on the graph, complete the taeile that follews: Ch 08: Assignment - Risk and Rates of Return An analyst belleves that infotion is going to increase by 2.0% over the next yeac while the market risk premiem will be unchanged. The analyst uses the Copital Asset Pricing Model (CAPM). The fotlowing graph plots the current SML Calculate Happy Corp, s new required return. Then, on the graph, use the sreen points (rectaygle symbols) to plot the new SML suggested by tris ansiyut's preciction, Hepsy Conpis new required rate of return is Toel tip: Mouse over the points on the graph to see their coordinates. Ch 08: Assignment - Risk and Rates of Return Courses Catalog and Study Tools Rental Options Ccllege Success Tips Career 5uccess Tips (3) Help [4. Glve Feedback The SML helps cetermine thi level of risk wversion ameng investeets. The higher the level of risk wersion, the the diope of the SM. 'Which wind of srock is mast affected oy changes in tisk ayeision? (th other words, which stocks see the biggest change in their required returns?) Ali stocks affected the same, regordess of beta Medium-beta stock Low-beta stocks My Home Gh 0d: Assigniment- Risk and Rates of Renurn. Catalog and Study Tools Rental Options College Success Tips Career Success Tips Help Give Feedback The SML. helps determine the level of risk aversion among imestars. The higher the level of rik aversion, the the slape of tin syt. Which ind of stock is most affected by changes in risk aversien? (in other wonds, which stocks see the blggest change in their requred returns?) Al stacks affected the same, regardiess of beta Mediumbeta stocks Low-beta socks Migh-beta stocks