a) Calculate the required return for an asset that has a beta of 1.5, given a risk-free rate of 3% and a market return of 10%

b) If investor have become more risk averse due to recent political risk events and the market return rises to 12%, what the required rate of return for the same asset?

c) Use your findings in part a to graph the initial security market lines (SML), and then use your findings in part b to graph ( on the same set of axes) the shift in the SML