Question: = = Suppose the Rrf = 5%, Rm = 11%, and b; = 1.1. If the risk-free rate decreases by 1%, but the slope of

= = Suppose the Rrf = 5%, Rm = 11%, and

= = Suppose the Rrf = 5%, Rm = 11%, and b; = 1.1. If the risk-free rate decreases by 1%, but the slope of the security market line remains the same, what will be the new required return for this company? 10.6% 11.5% 11.3% 10.8% 11.1%

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