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please answer and also let me know what exaclt to do on the 2nd graph Beale Manufacturing Company has a beta of 1.7, and Foley

please answer and also let me know what exaclt to do on the 2nd graph
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Beale Manufacturing Company has a beta of 1.7, and Foley Industries has a beta of 0.40. The required return on an index fund that holds the entire stock market is 1296. The risk-free rate of interest is 5.5%. By how much does Beale's required return exceed Foley's required return? Do not round intermediate calculations. Round your answer to two decimal places. 7. Changes to the security market line The following graph plots the current security market line (SML) and indicates the return that investors require from holding stock from Happy Corp. (HC), Based on the groph, complete the table thot follows: h 08: Assignment - Risk and Rates of Return An analyst believes that inflation is going to increase by 2.0% over the next year, while the market risk premium will be unchanged. The analyst uses the Capital Asset Priong Model (CAPM). The following graph plots the current SML. Calculate Happy Corp.'s new required return. Then, on the graph, use the green points (rectangle symbols) to plot the new SML suggested by this analyst's prediction. Happy Corp.'s new required rate of return is Toof tip: Mouse over the points on the graph to see theif coordinates. 08: A5signment - Risk and Rates of Return The sML helps determine the level of risk aversion among investors. The steeper the slope of the SML, the the ievel of risk sversion. Which kind of rook is most affected by changes in risk aversion? (in other words, which stocks see the biggest change in their required returns?) Low-beta stocis Medium-beta stacks All stacks affected the same, regardiess of beta High-beta stocks

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