Suppose investors believe that the standard deviation of the market-index portfolio has increased by 50%. What does the CAPM imply about the effect of this change on the required rate of return on Google's investment projects? Consider the statement: "If we can identify a portfolio that beats the S&P 500 Index portfolio, then we should reject the single index CAPM." Do you agree or disagree? Explain. Draw the SML for the market in questions 1 and 2 on the grid below. Only SMLs drawn on the handed-out grid will be accepted. Show the positions of (1) the risk-free asset, (2) the market portfolio, and (3) Claimed Denied Insurance Company stock on the SML. Label the point for the risk-free asset as F, the point for Claimed Denied as C, and the point for the market as a whole with the label M