Question: Suppose rRF = 3%, rM = 13%, and bi = 1.9. What is ri, the required rate of return on Stock i? Round your answer

Suppose rRF = 3%, rM = 13%, and bi = 1.9. What is ri, the required rate of return on Stock i? Round your answer to one decimal place. % 1. Now suppose rRF increases to 4%. The slope of the SML remains constant. How would this affect rM and ri? Both rM and ri will remain the same. Both rM and ri will increase by 1 percentage point. rM will remain the same and ri

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