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An analyst believes that inflation is going to increase by 3.20% over the next year, while the market risk premium will be unchanged. The analyst

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An analyst believes that inflation is going to increase by 3.20% over the next year, while the market risk premium will be unchanged. The analyst uses he Capital Asset Pricing Model (CAPM). The following graph plots the current SML. An analyst believes that inflation is going to increase by 3.20% over the next year, while the market risk premium will be unchanged. The analyst uses the Capital Asset Pricing Model (CAPM). The following graph plots the current SML. Calculate Happy Corp.'s new required return. Then, on the graph, use the rectangle symbols to plot the new SML suggested by this analyst's prediction. (Tool tip: Mouse over the points in the graph to see their coordinates.) Happy Corp.'s new required rate of return is An analyst believes that inflation is going to increase by 3.20% over the next year, while the market risk premium will be unchanged. The analyst uses he Capital Asset Pricing Model (CAPM). The following graph plots the current SML. An analyst believes that inflation is going to increase by 3.20% over the next year, while the market risk premium will be unchanged. The analyst uses the Capital Asset Pricing Model (CAPM). The following graph plots the current SML. Calculate Happy Corp.'s new required return. Then, on the graph, use the rectangle symbols to plot the new SML suggested by this analyst's prediction. (Tool tip: Mouse over the points in the graph to see their coordinates.) Happy Corp.'s new required rate of return is

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