Question: Assume initially that rRF = 6%, rM = 12%, and bI = 1.6. Now suppose rRF remains at 6 percent but rM increases to 13

Assume initially that rRF = 6%, rM = 12%, and bI = 1.6. Now suppose rRF remains at 6 percent but rM increases to 13 percent. The slope of the security market line (SML) does not remain constant. What is the final value of rI, the required rate of return on Stock I, after this change

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