Question
Suppose rRF =9%, rM =14% and bi=1.3 Required rate of return is 15.5 % now suppose rRF (1) increase to 10% or (2) decreases to
Suppose rRF =9%, rM =14% and bi=1.3 Required rate of return is 15.5 % now suppose rRF (1) increase to 10% or (2) decreases to 8%. The slope of the SML remains constant. How would the affect rM and ri?
please show the work to show how you get the answer.
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The Commercial Aircraft Finance Handbook
Authors: Ronald Scheinberg
1st Edition
1781372608, 978-1781372609
