Question: Suppose rRF = 5%, rM = 13%, and bi = 1.7. What is ri, the required rate of return on Stock i? Round your answer

Suppose rRF = 5%, rM = 13%, and bi = 1.7. What is ri, the required rate of return on Stock i? Round your answer to two decimal places. Now assume that rRF remains at 5% but rM increases to 14%. The slope of the SML does not remain constant. How would these changes affect ri? Round your answer to two decimal places. Now assume that rRF remains at 5% but rM falls to 12%. The slope of the SML does not remain constant. How would these changes affect ri? Round your answer to two decimal places

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