Question: . eBook Problem Walk Through Suppose 79,9%, and b = 2.2 a. What is the required rate of return on Stock I7 Round your answer

 . eBook Problem Walk Through Suppose 79,9%, and b = 2.2

. eBook Problem Walk Through Suppose 79,9%, and b = 2.2 a. What is the required rate of return on Stock I7 Round your answer to two decimal places b. 1. Now suppose of increases to 8%. The slope of the SML remains constant. How would this affect wande I. Both rand n will increase by 1%. II. will remain the same and n will increase by 1% III. T will increase by 1% and n will remain the same. IV. Both and will decrease by 1%. V. Bothm and n will remain the same. -Select- 2. Now suppose TRF decreases to 6%. The slope of the SML remains constant. How would this affect t and n? 1. Both hand will decrease by 1%. II. T will decrease by 1% and n will re the sam III. T will remain the same and I will decrease by 1% IV. Both rm and n will increase by 1% V. Both rand n will remain the same. -Select- c. 1. Now assume that rrr remains at 79, but increases to 10%. The slope of the SML does not remain constant. How would these changes affect n Round your answer to two decimal places 9 The new r will be 2. Now assume that rus remains at 79, but rm fatts to a. The slope of the SML does not remain constant. How would these changes affect n7 Round your answer to two decimal places The new n will be Check My Work to remaining) On y

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