Question: As an equity analyst you are concerned with what will happen to the required return to universal toddler s stock as market condition s change.

As an equity analyst you are concerned with what will happen to the required return to universal toddlers stock as market conditions change. Suppose
rRf increase to 6%, bUT=1.4
The slope of the SML remains Constant. How would this affect rM and rUT? Find the value?
1.11%,13.8%
2.13%,15.8%
3.14%,16.8%
4.15%,17.8%

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