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Question 9 (1 point) Suppose PRF = 5%, M = 10%, and b = 2.350. a. What is ri, the required rate of return on
Question 9 (1 point) Suppose PRF = 5%, M = 10%, and b = 2.350. a. What is ri, the required rate of return on Stock i? b. Now suppose that Pre increases to 6% and the slope of the SML remains constant. Recalculate n? c. Now assume that fri remains at 5% but im falls to 8%. The slope of the SML does not remain constant. Recalculate ri? a)16.750%; b)17.750%; c)10.700% a)16.750%; b)17.750%; c)12.050% a)28.500%; b)17.750%; c)12.050% a)16.750%; b)15.400%; c)12.050
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