11. Changesto the security market line The following graph plots the current security market line (SL) and indicates the return that investors require from holding stock from Happy Corp. CMC Based on the gran, complete the table that follows (Tooltip Mouse over the points in the graph to see their coordinates.) QUIRED RATE OF RETURN POCO 200 16.0 120 REQUIRED RATE OF RETURN (Percent) 11 1 0 0.5 1.5 1.0 RISK (Beta) Value CAPM Elements Ristrerater Par risk premium (R) Happy Corp, stock's beta Required rate of return on Kay Corp. stock An analyst believes that inflation is going to increase by 4.00% over the next year, while the market luk premium will be unchanged. The analyst used the Capital Asset Pricing Model (CAI). The following graph plots the current SML Calculate Corp. now required return. Then, on the praph, use the rectangle symbols to plot the new SM supported by the analyst's prediction. (Tooltio: Mouse over the points in the grash to see their coordinates.) Happy Corp: new required rate of return is ? 20 New SML 16 REQUIRED RATE OF RETURN (Percent) 04 2.0 08 1.2 RISK (Beta)