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7-9. Required Rate of Return Suppose rrp = 9%, rm = 14% and b = 1.3. 1. What is the required rate of return on

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7-9. Required Rate of Return Suppose rrp = 9%, rm = 14% and b = 1.3. 1. What is the required rate of return on Stock i? 2. Now suppose rrp (1) increases to 10% or (2) decreases to 8%. The slope of the SML remains constant. How would this affect rm and n? 3. Now assume rrp remains at 9% but rm (1) increases to 16% or (2) falls to 13%. The slope of the SML does not remain constant. How would these changes affect n

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