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8 pts Question 12 Which of the following statements is most correct? If the risk-free rate increases, then the plot of the SML will shift

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8 pts Question 12 Which of the following statements is most correct? If the risk-free rate increases, then the plot of the SML will shift downwards. If investors' risk aversion increases, then the plot of the SML will become steeper. More than one of the answers is correct. None of the answers are correct. When the market is in equilibrium, expected returns are equal to required returns. Question 11 What is the IRR of a project with the following yearly cash flows if the firm's WACC is 14%? Year 0 1 2 3 4 Cash Flow -$10,000 $5,000 $7,500 $8,400 $2,100 3.92% 15.04% .-1.95% None of the answers are correct. 46.75%

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