Hequired return on Stock = Riek-free return + (Market risk premium )( Stock's beta) If a stock's expectod retum plots on or above the SML. then the stock's retum is 5ML, the stock's retum is: to compensate the investor for risk. aversion changes, then the 5ML. plotted on a graph will rotate up de cown bichesing more or less steep if ievestors become more or less risk averse. A firm can infuence mu =2%, nd =5Ti; FPM n. 7%, and beta =1.4 What is WCE's required rate of retum? Do not round intermedlate calculations. Round your answer to two decimar places. If inflation increoses by 205 but there is no change in investors' fisk avenion, what is WCE's reguired rate of return now? Do not round intermediate catculations Round your answer to two decimal places. Assume now that there is no change in inflation, but risk aversion increases by 2%. What is wces required rate of return now? oo not round intermediate caiculations. Round your answer to two decimal places. If infiation increases by 2% and risk aversion increases by 2 Ww, what is wCE s required rate of return now? Do not round intermediate calculations. Round your aniwer to two decimal places