Security Market Line. Urgent, please include all parts please.

(Security market line) If the rajk-free rate of teturn is 6 percent and the expectod rato of return on the market portfolia is 17 percent. a. Graph the socurity market line (SML). Also, calculate and label the market risk premlum on the graph. b. Using your graph from question a, identify the expected rates of return on a portfoio with a beta of 0.62 and a beta of 1.70, respectively. c. Now assume that because of a financial crists the economy slows down and anticipated inflation drops. As a tesult, the risk-tree rase of resum drops to 1 percent and the expected rale of retum on the market portolio drops to 12 peccent. Draw the resulting security market line. d. Now assume that because of economic fears, investors have become more risk arerse, demanding a higher return cn all assets that have any risk. This results in an increase in the expected rato of retum on the market portholio to 19 percent (with the risk-free rise equal to 6 percent). Drew the rosulting 5MML. What can you conclude about the eflect of a financial crisis on expected rates. of return? a. Assume the niskfifee rate is 6 percont and the expected return on the market portfolio is 17 percent. The market risk premium is 4. (Round to the nearest percent) Draid the socurity market line on the graph beow. Note that you can cllck the magnifying glass button to enlarge the graph and use the Line Drawing Tool In the palette to draw the line. (Security market line) If the nisk-free rate of return is 6 percent and the expectod rate of return on the maket porflolio is 17 percont: a. Graph the security markot line (SML). Also, calculate and label the market risk premium on the graph. b. Using your graph from question a, identify the expectod rates of return on a portfollo with a beta of 0.62 and a beta of 1.70, respectively. c. Now assume that because of a francial crisis the economy slows down and anticipated infotion drops. As a result, the risk-free rase of totum dreps to 1 pericent and the expected rath of refurm on the market portfolio drops to 12 percent. Draw the resulting security market line. d. Now atsume that because of economic foars, imvesiors have become more risk averse, demanding a higher return on all assots that have any risk. This result in an incesse in the expected rate of refum on the market portfolio to 19 percent (with the rik-free rate equal to 6 percent). Draw the resulting SML. What can you conctude about the effect of a fnunclal crisis on expected rales of tehum? b. Uning your grapa from question a, the expected rates of reburn on a portlolio with a beta of 0.62 is x. (Found to the noarest whole number.) Using your graph from question a, the expected rates of retum on a portolio with a beta of 1.70 is 1 . (Round to the nearnst whole number) c. Now assume that because of a fnancial crisis the economy tlows down and anstopated infotion drops. As a result, the risketree rase of return drops to 1he and the expected rate of retum on the macket portfolio drops to 12%. Draw the resulting securfy mankt line. Nete that you can cilck the mognifying glass button to enlarge the graph and use the Line Orawing Tool in the palette to draw the line. (Security market line) If the risk-free rato of retum is 6 percont and the expected nowo of retum on the markot portfolio is it percent. a. Graph the security market line (SML). Aso, calculate and labei the market risk poemium on the graph. b. Using your groph trom question a, identity the expected rates of return on a poctolo with a beta of 0.62 and a bota of 1.70, respectivey e. Now assume that because of a financial crisis the economy slows down and anticipated inflotion drops. As a result, the riskefree rate of retum drops to 1 percont and the expected rate of teturn on the market potfolo drops to 12 percent Draw the resulting security market line. d. Now assume that bocause of economic fears, investors have become more risk averse, demanding a higher return on al assets that have any risk. This retults in an increase in the expected rate of tetum on the market portfolio to 19 percent (with the risk-tiee rate equal to fi percent). Draw the resulting SML. What can you conclude about the elfect of a fnancial crisis on expected rates of rotirm? c. Now assume that because of a fonancial crats the economy slows down and anticipated inflation drops. As a result, the risk-tree rale of return drops to 15 and the expected tate of refum on the market portfolio drops to 12\%. Draw the resulting securty makkot bine. Note that you can cllek the magnifying glass button to enlarge the graph and use the Line Drawing Tool in the palette to draw the line. (Security market line) If the risk-treo tate of return is 6 percent and the expected ral0 of return on the markes portfalio is 17 percent. a. Grash the security market line (SML). Also, calculate and label the market risk premium on the graph. b. Using your graph from question a, identify the expectad rates of return on a portfolio with a bota of 0.62 and a bota of 1,70 , fespectively. c. Now assime that because of a finandal crisis the economy slows down and anticipated inflation drops. As a result, the risk:-tree rate of return diops to 1 percent and the expecied rate of tetum on the market portfolio drops to 12 percent. Draw the resulting security maket line. d. Now assume that because of economic fears, investoes have become more risk averse, demanding a higher rotum on all assets that have any risk. This results in an increase in the expected rate of tetum on the market portiolio to 19 percent (with the risk-tree rate equal to 6 percent). Draw the resulting 5ML. What can you conclude aboud the offect of a financiat crisis on expected rales of retum? d. Now assume that because of economic fears, investors have become more rak averse, demanding a highter return on all assets that have any risk. This results in an increase in the expected tate of return on the market portfolio to 19% (whth the ritkefree rote staying at 6 W). Draw the resuting SML. Note that you can click the magnitying glass button to enlarge the graph and use the Line Drawing Tool in the palette to draw the line. What can you conclude about the e5ect of a finandid cisis on expecied rates of retum? (Select the best choice bolow) A. Afrancial Gish ahwes increases the nlope of the security market ine and etes the recured retum. B. A financial crisis can have various eflects such as inereasing the slope of the secunty makat, horeasing expected returns andior shiting the security manket ine down at the bame slope. decreasing the expected returns. c. A Anancial cisis never changes the slope of the security markel ine not the requind mom. D. A finsocial crivs atways decreases the slope of the seourty maiknt line and fous the required retum A. A financial crisis always increases the slope of the security market line and thus the required return. B. A financial crisis can have various effects such as increasing the slope of the security market, increasing expected returns and/or shift decreasing the expected returns. c. A financial crisis never changes the slope of the security market line not the required return. (Security market line) If the rajk-free rate of teturn is 6 percent and the expectod rato of return on the market portfolia is 17 percent. a. Graph the socurity market line (SML). Also, calculate and label the market risk premlum on the graph. b. Using your graph from question a, identify the expected rates of return on a portfoio with a beta of 0.62 and a beta of 1.70, respectively. c. Now assume that because of a financial crists the economy slows down and anticipated inflation drops. As a tesult, the risk-tree rase of resum drops to 1 percent and the expected rale of retum on the market portolio drops to 12 peccent. Draw the resulting security market line. d. Now assume that because of economic fears, investors have become more risk arerse, demanding a higher return cn all assets that have any risk. This results in an increase in the expected rato of retum on the market portholio to 19 percent (with the risk-free rise equal to 6 percent). Drew the rosulting 5MML. What can you conclude about the eflect of a financial crisis on expected rates. of return? a. Assume the niskfifee rate is 6 percont and the expected return on the market portfolio is 17 percent. The market risk premium is 4. (Round to the nearest percent) Draid the socurity market line on the graph beow. Note that you can cllck the magnifying glass button to enlarge the graph and use the Line Drawing Tool In the palette to draw the line. (Security market line) If the nisk-free rate of return is 6 percent and the expectod rate of return on the maket porflolio is 17 percont: a. Graph the security markot line (SML). Also, calculate and label the market risk premium on the graph. b. Using your graph from question a, identify the expectod rates of return on a portfollo with a beta of 0.62 and a beta of 1.70, respectively. c. Now assume that because of a francial crisis the economy slows down and anticipated infotion drops. As a result, the risk-free rase of totum dreps to 1 pericent and the expected rath of refurm on the market portfolio drops to 12 percent. Draw the resulting security market line. d. Now atsume that because of economic foars, imvesiors have become more risk averse, demanding a higher return on all assots that have any risk. This result in an incesse in the expected rate of refum on the market portfolio to 19 percent (with the rik-free rate equal to 6 percent). Draw the resulting SML. What can you conctude about the effect of a fnunclal crisis on expected rales of tehum? b. Uning your grapa from question a, the expected rates of reburn on a portlolio with a beta of 0.62 is x. (Found to the noarest whole number.) Using your graph from question a, the expected rates of retum on a portolio with a beta of 1.70 is 1 . (Round to the nearnst whole number) c. Now assume that because of a fnancial crisis the economy tlows down and anstopated infotion drops. As a result, the risketree rase of return drops to 1he and the expected rate of retum on the macket portfolio drops to 12%. Draw the resulting securfy mankt line. Nete that you can cilck the mognifying glass button to enlarge the graph and use the Line Orawing Tool in the palette to draw the line. (Security market line) If the risk-free rato of retum is 6 percont and the expected nowo of retum on the markot portfolio is it percent. a. Graph the security market line (SML). Aso, calculate and labei the market risk poemium on the graph. b. Using your groph trom question a, identity the expected rates of return on a poctolo with a beta of 0.62 and a bota of 1.70, respectivey e. Now assume that because of a financial crisis the economy slows down and anticipated inflotion drops. As a result, the riskefree rate of retum drops to 1 percont and the expected rate of teturn on the market potfolo drops to 12 percent Draw the resulting security market line. d. Now assume that bocause of economic fears, investors have become more risk averse, demanding a higher return on al assets that have any risk. This retults in an increase in the expected rate of tetum on the market portfolio to 19 percent (with the risk-tiee rate equal to fi percent). Draw the resulting SML. What can you conclude about the elfect of a fnancial crisis on expected rates of rotirm? c. Now assume that because of a fonancial crats the economy slows down and anticipated inflation drops. As a result, the risk-tree rale of return drops to 15 and the expected tate of refum on the market portfolio drops to 12\%. Draw the resulting securty makkot bine. Note that you can cllek the magnifying glass button to enlarge the graph and use the Line Drawing Tool in the palette to draw the line. (Security market line) If the risk-treo tate of return is 6 percent and the expected ral0 of return on the markes portfalio is 17 percent. a. Grash the security market line (SML). Also, calculate and label the market risk premium on the graph. b. Using your graph from question a, identify the expectad rates of return on a portfolio with a bota of 0.62 and a bota of 1,70 , fespectively. c. Now assime that because of a finandal crisis the economy slows down and anticipated inflation drops. As a result, the risk:-tree rate of return diops to 1 percent and the expecied rate of tetum on the market portfolio drops to 12 percent. Draw the resulting security maket line. d. Now assume that because of economic fears, investoes have become more risk averse, demanding a higher rotum on all assets that have any risk. This results in an increase in the expected rate of tetum on the market portiolio to 19 percent (with the risk-tree rate equal to 6 percent). Draw the resulting 5ML. What can you conclude aboud the offect of a financiat crisis on expected rales of retum? d. Now assume that because of economic fears, investors have become more rak averse, demanding a highter return on all assets that have any risk. This results in an increase in the expected tate of return on the market portfolio to 19% (whth the ritkefree rote staying at 6 W). Draw the resuting SML. Note that you can click the magnitying glass button to enlarge the graph and use the Line Drawing Tool in the palette to draw the line. What can you conclude about the e5ect of a finandid cisis on expecied rates of retum? (Select the best choice bolow) A. Afrancial Gish ahwes increases the nlope of the security market ine and etes the recured retum. B. A financial crisis can have various eflects such as inereasing the slope of the secunty makat, horeasing expected returns andior shiting the security manket ine down at the bame slope. decreasing the expected returns. c. A Anancial cisis never changes the slope of the security markel ine not the requind mom. D. A finsocial crivs atways decreases the slope of the seourty maiknt line and fous the required retum A. A financial crisis always increases the slope of the security market line and thus the required return. B. A financial crisis can have various effects such as increasing the slope of the security market, increasing expected returns and/or shift decreasing the expected returns. c. A financial crisis never changes the slope of the security market line not the required return