Given: P'RE = 9% rm = 14% b; = 1.3 a. What is r, the Required Rate of return on Stock i? Graph the SML based on this information. Also, plot Stock i onto the SML. b. Now assume that the r remains at 9%, but r increases to 16% (thus, risk aversion has increased). What is the new r, the Required Rate of return on Stock i? 2) Based on this information, graph this new SML and the original SML from part a, on the same graph. Also, plot Stock i onto both the original and the new SML. c. Now suppose that rincreases to 10% (thus, inflation has increased by 1%). The slope of the SML remains the same. 1) What is the new r, the Required Rate of return on Stock i? 2) Based on this information, graph this new SML and the original SML from part a, on the same graph. Also, plot Stock i onto both the original and the new SML