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5uppose TF=5%,Tk=13%, and b=1.3. a. What is nu the required rate of return on 5 tock iz Round your answer to one decimal place. b.

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5uppose TF=5%,Tk=13%, and b=1.3. a. What is nu the required rate of return on 5 tock iz Round your answer to one decimal place. b. 1. Now suppose ths increases to 6%. The slope of the SML remains constant, How would this affect ry and n ? 1. m will increase by 1 percentage point and n will remain the satne. 11. Both hm and n wils decrease by 1 percentage point. III. Both FM and n will remain the same. TV. Both in and n will increase by 1 percentage point. V. rm will remain the same and n will increase by 1 percentage point. 2. Now sugpose rif decreases to 4%. The slope of the SML remains constant. How would this affect int and n? 1. Both TM and i will increase by 1 percentage point. 11. Both fit and n will remain the same. III. both fM and ni will decrease by 1 percentage point. IV. fr will decrease by 1 percentage point and n will remain thet same. V. ry will temain the same ind n will decrease by 1 percentage point. to one decintal place. The new if will be one decumal place. the new ri will be Check Mly Work (2 temidining)

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