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Please answer the following questions. Thank you. There should be 8 answers total. Please number using 1, 2, 3, 4, 5, and etc. 8. Changes

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Please answer the following questions. Thank you. There should be 8 answers total. Please number using 1, 2, 3, 4, 5, and etc.

8. 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 graph, complete the table that follows. REQUIRED RATE 0F RETURN (Percent0 20.0 16.0 Return on 12.0 HC's Stock 8.0 4.0 1.5 1.0 2.0 0.0 RISK (Beta) CAPM Elements Value Risk-free rate (r Market risk premium (RPM) Happy Corp. stock's beta Required rate of return on w Happy Corp. stock

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