Suppose the market has experienced a combination of an increase in real interest rate and anticipated inflation that causes the risk-free rate to increase from 6% to 8%, but investors' risk aversion remains constant ( 15 points) i. What will happen to the market risk premium? ii. What effect does the increase in the risk-free rate have on the SML? iii. How does the SML reflect a positive change in the market risk premium? iv. What may cause a firm's beta to change? v. If the changes you noted in (iv) above lead to a higher or lower beta, what is the effect on the firm's required return