$.$ Suppose rRF $=5\%,$ rM $=10\mathrm{.}6\%,$ and bk$=1\mathrm{.}24.$

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

b$)$ If rRF increases to $7\%$ and the slope of the SML remains constant. How would this affect rM and rk$?$

$($i$.$e$.,$ show the value of rM and rk after the change$)$

c$)$ If rRF remains at $5\%$ but rM falls to $9\mathrm{.}2\%.$ The slope of the SML does not remain constant. How would

these changes affect rk$?($i$.$e$.$ show the new rk$)$