Question: Suppose = 3%, M = 9%, and 6 - 1.1. a. What is n, the required rate of return on Stock 17 Round your answer

Suppose = 3%, M = 9%, and 6 - 1.1. a. What is n, the required rate of return on Stock 17 Round your answer to two decimal places % b. 1. Now suppose rar increases to 4%. The slope of the SML remains constant. How would this affect and n? 1. Both and will remain the same. II. Both and will increase by 1% III. will remain the same and will increase by 19. IV. will increase by 1% and will remain the same. V. Both and will decrease by 1% -Select 2. Now suppose rap decreases to 2%. The slope of the SML remains constant. How would this affect rand 17 1. Both and will remain the same. 11. Both and will decrease by 1%. 111. will decrease by 1% and will remain the same TV. will remain the same and will decrease by 19 V. Both and will increase by 1% c. 1. Now assume that rep remains at 3%, but increases to 10%. The slope of the SML does not remain constant. How would these changes affect 17 Round your answer to two decimal places The new n will be 2. Now assume that for remains at 3%, but fails to 8%. The slope of the SML does not remain constant. How would these changes affect 2 Round your answer to two decimal places. The new will be %
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