You see in The Globe and Mail that the yield spread between BBB corporate bonds and AAA

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You see in The Globe and Mail that the yield spread between BBB corporate bonds and AAA corporate bonds has gone from 350 basis points (3.5%) to 200 basis points (2%). Show graphically the effect of this change in yield spread on the SML and discuss its effect on the required returns for common stocks.

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Investment Analysis And Portfolio Management

ISBN: 9780176500696

1st Canadian Edition

Authors: Frank K. Reilly, Peggy L. Hedges, Philip Chang, Keith C. Brown, Hedges Reilly Brown

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