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Brady Enterprises beta is 1.40, the risk-free rate is 4%, and the forecasted return on the market is 10%. Brady Enterprise expected return is 12%.

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Brady Enterprises beta is 1.40, the risk-free rate is 4%, and the forecasted return on the market is 10%. Brady Enterprise expected return is 12%. a. Calculate the required return for Brady Enterprise. b. Comparing expected and required returns, determine whether Brady Enterprise is over/underpriced and what must happened to the price of the stock. c. Given an increase in market risk aversion, the market risk premium increases by 3%. a. find the new E(rm) b. How will the SML change

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