Question: please answer properly and fast 1. If the risk-free rate of return is currently 7% (r*=3) in Bangladesh and, market (average) return is expected to
please answer properly and fast
1. If the risk-free rate of return is currently 7% (r*=3) in Bangladesh and, market (average) return is expected to be 13%. a. What is the required rate of return for a stock with a beta coefficient (3) equal to 2.0 and 0.5? (2) b. As a rational investor your expectation is that, due to the current pandemic and upcoming new variant Omicron, the inflation rate may increase. Show the changes in SML (graph) if the inflation rate increases by 3%. Use your findings to analyse the graph (3)
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