Next question Capital asset priching motel) Crnce Corporation to considering the following investments. The current sto on Titan 3 percent and the expected roten ter the market Opercom Stock K 0 Bela 117 134 679 U Concerto a. Using the CAPM whates of return should race require for each individual security . How would your evaluation of the expected rates of tum for Grace change the riberate were to sto 45 percent and the market risk pronu were to be only $5 perc c. Which market premium scenario comparte or b) best its reconary? A period of economic expaExplain your response CH The expected rate ottom for security Kich has bea of 112 Roved to two decimal places The expected rate of return to start which has a buta 134 Rood to be decent places) The expected rate of chama hicho bolo sound to tus decimal places Capital ansat pricing model Grace Corporation is comidering the following lives. The current rate on Trasy 3 percent and the expected return for the market is percent : CD www.LI The expected rate of retum for security, which habets of 0.7%, Round te we decimal places) The expected one of even for culty, which has a bule of 0.02. Round to two decimal places b. If the risk-free rate were to rise to 45% and the market risk premium were to be only 5.5%, the expected cate of return for securityka Pound to two decimal places the disk three rano were to vite to 15% and the market risk premium were to be only 5596 the upected tate of return for security of Round 10 tuo decimal places) f the stoke-fron rate were to rise to 45% and the market risk premium were to be only 5, 8% the upected the cor return for security et ta Round to two decimal places) If the lake rate were to rise to 25% and the market risk premium were to be only 5.5% the wipedos rate of return for security Us Round to two decimal piacer) L. Which make risk premium scenario from parta or b) best its a recensionary environment? y select from the drop-down menu Which mak premium scenario di partar bj hostits a period of economic expansion? Select from the oropdown