Calculate the expected return for Apple company which has a beta of 1.25 when the 3-month t-bill rate (RF) is 0.025 and you expect return of S&P 500 index (RM) to be 20 percent. (b) Draw the SML under the above case and indicate the Risk premium of S&P 500 index and the Apple company on the graph. (c) If the inflation is expected to increases by 1.5 percent and the S&P 500 index return decreases by 5%, what effect would this have on the SML ? Show the effect on the above SML graph