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Suppose 3%, 12%, and b = 1.7. a. What is the required rate of return on Stock 17 Round your answer to one decimal place

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Suppose 3%, 12%, and b = 1.7. a. What is the required rate of return on Stock 17 Round your answer to one decimal place A-Z b. 1. Now suppose pas increases to 4%. The slope of the SML remains constant. How would this affect and ? I will remain the same and will increase by 1 percentage point. II. T will increase by 1 percentage point and n will remain the same. M. Both and will decrease by 1 percentage point. IV. Both and will remain the same V. Both and will increase by 1 percentage point. 2. Now supposen decreases to 2%. The slope of the SML remains constant. How would this affect and ? 1. Both and will decrease by 1 percentage point. II. Will decrease by 1 percentage point and will remain the same III will remain the same and will decrease by 1 percentage point IV. Both and will increase by 1 percentage point V. Both and will remain the same. Select C1. Now assume that remains at 3%, but increases to 13%. 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 2. Now assume that remains at 3%, but fails to 11%. The slope of the SML does not remain constant. How would these changes affect n Round your answer to one decimal place The new n will be

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