can you answer these questions and do the graph

a Search Ch 08: Assignment - Risk and Rates of Return The following graph plots the current security market line (SML) and indicates the return that investors require from holding stock from Happy Corps (HC). Based on the graph, complete the table that follows: 200 REQUIRED RATE OF RETURN Porcent) 0.5, 7.5 10 Return on HCS FISK B Ch 08: Assignment - Risk and Rates of Return Q Search this cour Value CAPM Elements Risk free rate ( Market risk premium (RPM) Happy Corp, stock's beta Required rate of return on Haco Corp, stock An analyst believes that inflation is going to increase by 2.0% over the next year, while the market elsk premium will be unchanged. The analyst uses the Capital Asset Pricing Model (CAPM). The following graph plots the current SML. Calculate happy Corp's nen required ceturn. Then, on the graph, use the green points (rectangle symbols) to plot the new Su savested by this analyst's prediction Happy Corp. 's new required rate of return is Tooltip: Mouse over the points on the graph to see their coordinates NE SUL NE CENGAGE MINDTAP 10 Ch 08: Assignment - Risk and Rates of Return Tool tip: Mouse over the points on the graph to see their coordinates. 2 20 18 New SML REQUIRED RATE OF RETURN (Percent) 04 20 13 RISK Beta 08: Assignment - Risk and Rates of Return as REQUIRED RATE OF 0 4 0 0.4 0.8 12 RISK (Beta) 20 The SML helps determine the risk-aversion level among Investors. The steeper the slope of the SML, the the level of risk aversion Which of the following statements best describes a shift in the SML caused by increased risk aversion? The risk-free rate will increase. The risk-free rate will remain constant. The risk-free rate will decrease