The following graph plots the current SML and indicates the return that investors require from holding stock from Happy crop (HC) Based on the graph complete the table that follows. An analyst believes that inflation in going to increase by 2.0% over the year, while the market risk premium will be unchanged. The analyst uses the capital assume pricing model (CAPH) The following graph the current SML. Calculate happy crops new required return Then on the graph, use the green points to plot the new SML suggested by this analyst's prediction. Happy Corp's new required rate of return is Tool tip Mouse over the points on the graph to see their The SML helps determine the risk-aversion level among The higher the level of risk aversion the the slope of the SML. which the following statements best describe a shift in the SML by increases risk ? The risk-free rate will The risk-free rate will decrease The risk-free rate will remain The following graph plots the current SML and indicates the return that investors require from holding stock from Happy crop (HC) Based on the graph complete the table that follows. An analyst believes that inflation in going to increase by 2.0% over the year, while the market risk premium will be unchanged. The analyst uses the capital assume pricing model (CAPH) The following graph the current SML. Calculate happy crops new required return Then on the graph, use the green points to plot the new SML suggested by this analyst's prediction. Happy Corp's new required rate of return is Tool tip Mouse over the points on the graph to see their The SML helps determine the risk-aversion level among The higher the level of risk aversion the the slope of the SML. which the following statements best describe a shift in the SML by increases risk ? The risk-free rate will The risk-free rate will decrease The risk-free rate will remain