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can you explain your answer? The following Graph plats the current security market ine (SML) and ind cates the returm that irveutars require from holdirig

can you explain your answer?
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The following Graph plats the current security market ine (SML) and ind cates the returm that irveutars require from holdirig stiock froim Hapby Cadp. (tkic). Flased on the graph, complete the tabie that follows: Calculate Hagoy Corp.is new tequired return. Then, on the oraph, une the oreen points (rectangle svmbols) to plot the new sML. sugonsted by this analyst's prediction. Happy Corpie new required rate of retum it Tool tip: Mouse over the points on the graph to see their coordinates. analyst's prediction: Mappy Corp.il new required rate of retum is Tool tipi Moose quer the points on the graph to tee their coordinates. (?) Happy Cocpis new required rate of ronum is Tool tipt Mouse over the points on the graph to seel theur coorffinatifes ir the next year, whlle the market risk premium will be unchanged. The an the current SML. use the oreen points. (rectangle symbols) to plot the new SML suggested Happy Corpi's new required rate of retum is Tool tip: Mouse over the points on the graph to see thelf coordinates. the next year, while the market risk premium will be unchanged. The an e current SML. ie the green points (rectangle symbols) to plot the new SML suggested Happy Corp.'s new required rate of return is Tool tip: Mouse over the points on the graph to see their coordinates. analyet'y prediction. The SML helos determine the risk-aversion level among investors, The higher the lovel of risk aversion, the the slope of the SML. Which of the following statements best descibes a shift in the SML caused by inceased risk aversion? The risk-free rate will increase. The rish free rate will decrease: The fish fites rate will remain constant

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