Please also provide the solution for the graph.

please provide the graph

8. Changes to the security market line The following graph plots the current security market line (SML) and indicates the retum that investors require from holding stock from Happy Corp. (HC). Based on the graph, complete the table that follows. REQUIRED RATE OF RETURN (Percent 20.0 16.0 12.0 Return on HC's Stodk 8.0 4.0 0.0 0.5 1.0 1.5 2.0 RISK Betal CAPM Elements Value Risk-free rate (rR) Market risk premium (RPN) Happy Corp. stock's beta equired rate ofretum onY Happy Corp. stock An analyst believes that inflation is going to increase by 2.0% over the next year, while the market risk premium will be unchanged. The analyst uses the Capital Asset Pricing Model (CAPM). The following graph plots the current SML Calculate Happy Corp.'s new required retum. Then, on the graph, use the green points (rectangle symbols) to plat the new SML suggested by this analyst's prediction Happy Corp.'s new required rate of retum is Tool tip: Mouse over the points on the graph to see their coordinates. Tool tip: Mouse over the points on the graph to see their coordinates REQUIRED RATE OF RETURN (Percent 20 New SML 16 12 0 04 8 2 20 RISK etal cineralli The SML helps determine the level ofrisk aversion among investors. The steeper the slope of the SML, the the level of risk aversion. Which kind of stock is most affected by changes in risk aversion? (In ather words, which stocks see the biggest change in their required retums?) O Low-beta stocks O High-beta stocks O Medium-beta stocks O All stocks affected the same, regardless of beta