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Suppose TRF 5%, IM = 10%, and b; = 0.350. a. What is f;, the required rate of return on Stock i? b. Now suppose

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Suppose TRF 5%, IM = 10%, and b; = 0.350. a. What is f;, the required rate of return on Stock i? b. Now suppose that if increases to 6% and the slope of the SML remains constant. Recalculate 1? c. Now assume that rre remains at 5% but im falls to 8%. The slope of the SML does not remain constant. Recalculate ? O a)6.750%; b)7.750%; c)6.700% a)6.750%; b)7.750%; c)6.050% a)8.500%; b)7.750%; c)6.050% O ab%c) a)6.750%; b)7.400%; c)6.050

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