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Attempts Keep the Highest/15 3. Problem 8.12 (Required Rate of Return) Book Problem Walk-Through Suppose -6,9%, and b = 1.2. 3. What is the required
Attempts Keep the Highest/15 3. Problem 8.12 (Required Rate of Return) Book Problem Walk-Through Suppose -6,9%, and b = 1.2. 3. What is the required rate of return on Stock 17 Round your answer to one decimal place. % b. 1. Now suppose to increases to 7%. The slope of the SML remains constant. How would this affect and ? 1. Both and will remain the same. 11. Both and will increase by 1 percentage point III. T will remain the same and will increase by 1 percentage point IV. T will increase by 1 percentage point and will remain the same V. Both rm and will decrease by 1 percentage point Select 2. Now suppose for decreases to 5%. The slope of the SML remains constant. How would this affect and n? 1. Both and will remain the same. II. Both and will decrease by 1 percentage point III. T will decrease by 1 percentage point and will remain the same. IV. r will remain the same and will decrease by 1 percentage point. V. Both and will increase by 1 percentage point. -Select 9 c. 1. Now assume that has remains at 6%, but ru increases to 10%. The slope of the SML does not remain constant. How would these changes affect n7 Round your answer to one decimal place The new will be 2. Now assume that for remains at 6%, but re falls to 8%. The slope of the SML does not remain constant. How would these changes affect n? Round your answer to one decimal place The new r will be
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