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Suppose kRF = 15%, kM = 23%, and bi = 2.3. a. What is ki, the required rate of return on stock i? b. Now

Suppose kRF = 15%, kM = 23%, and bi = 2.3. a. What is ki, the required rate of return on stock i? b. Now suppose kRF (1) increases to 10 percent or (2) decreases to 8 percent. The slope of the SML remains constant. How would this affect kM and ki?

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