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Please solve all Suppose 3%, 10%, and by- 1.8. a. What is in the required rate of return on Stock 17 Round your answer to

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Suppose 3%, 10%, and by- 1.8. a. What is in the required rate of return on Stock 17 Round your answer to one decimal place. % b. 1. Now suppose of increases to 4%. The slope of the SML remains constant. How would this affect and n? I will increase by 1 percentage point and n will remain the same. II. Both and will decrease by 1 percentage point. III. Both and n will remain the same. IV. Both and n will increase by 1 percentage point. V. He will remain the same and n will increase by 1 percentage point Select D 2. Now suppose to decreases to 2%. The slope of the SML remains constant. How would this affect and n? 1. Both hand n will increase by 1 percentage point. II. Both and n will remain the same. TIL Both and will decrease by 1 percentage point IV. Will decrease by 1 percentage point and n will remain the same. V. T will remain the same and will decrease by 1 percentage point. Select B one decimal place. c. 1. Now assume that remains at 3%, but increases to 11%. The slope of the SML does not remain constant. How would these changes affect 17 Round your answer to The new n will be %. 2. Now assume that remains at 3%, but falls to 9%. The slope of the SML does not remain constant. How would these changes affect ? Round your answer to one decimal place. The new n will be %. HR Industries (HRT) has a beta of 1.1; LR Industries's (LRI) beta is 0.5. The risk-free rate is 6%, and the required rate of return on an average stock is 13%. The expected rate of Inflation built into rafalls by 1.5 percentage points, the real risk-free rate remains constant, the required return on the market falls to 10.5%, and all betas remain constant. After all of these changes, what will be the difference in the required returns for HR and LRI? Do not round intermediate calculations. Round your answer to two decimal places

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