Suppose rRF $=4\%,$ rM $=13\mathrm{.}5\%,$ and bk$=1\mathrm{.}58.$

a$)$ Find the required rate of return on stock k $($rk$)$

b$)$ If rRF remains at $4\%$ but rM falls to $10\mathrm{.}2\%.$ The slope of the SML does not remain constant. How

would these changes affect rk$?$

d$)$ If rRF increases to $6\mathrm{.}4\%$ and the slope of the SML remains constant, what are the value of rM and

rk$?$