HELP PLS

The fellswing grach plots the current security market line (51e2) and indloats the return that investors require from holding stock from. Happy Corb. (Vic). Based on the praph, conticete the tatie that follome An analyst belleves that infiation is going to increase by 3.0% over the next year, whille the market risk premium will be unchanged. The analyst wans the Capital Asset Pridng Hoded (CAPM). The following oraph olots the current SML. Calculate Hapoy Com it new required return. Then, on the oraph, use the green points (rectangle symbols) to plot the new sML suggested by this atalyetis prediction. Haspy Corp. new tequired rate of return is Happy Corp.'s new required rate of return is Tool tip: Mouse over the points on the graph to see their coordinates. Ch 08: Assignment - Risk and Rates of Return The 5ML helos 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 the shape of the SML. If investors were not at all risk averse? The 54L would have a negative slope. The 5ML would have a positive slope, but the slope would be flatter than it would be if investors were risk averse. The sMt. would be a horizontal line. The 5HL would have a positive slope, but the slope would be steeper than it would be if investors were risk averse. The fellswing grach plots the current security market line (51e2) and indloats the return that investors require from holding stock from. Happy Corb. (Vic). Based on the praph, conticete the tatie that follome An analyst belleves that infiation is going to increase by 3.0% over the next year, whille the market risk premium will be unchanged. The analyst wans the Capital Asset Pridng Hoded (CAPM). The following oraph olots the current SML. Calculate Hapoy Com it new required return. Then, on the oraph, use the green points (rectangle symbols) to plot the new sML suggested by this atalyetis prediction. Haspy Corp. new tequired rate of return is Happy Corp.'s new required rate of return is Tool tip: Mouse over the points on the graph to see their coordinates. Ch 08: Assignment - Risk and Rates of Return The 5ML helos 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 the shape of the SML. If investors were not at all risk averse? The 54L would have a negative slope. The 5ML would have a positive slope, but the slope would be flatter than it would be if investors were risk averse. The sMt. would be a horizontal line. The 5HL would have a positive slope, but the slope would be steeper than it would be if investors were risk averse