Supposent and b i =1.8 a. What is the required rate of return on Stock your answer to one decimal place

Module 5 Homework 10. Problem 8.12 (Required Rate of Return) ebook Problem Walk-Through Supposers 6%, H = 10%, and b = 1.8. a. What is the required rate of return on Stock 17 Round your answer to one decimal place % b. 1. Now suppose to increases to 7%. The slope of the SML remains constant. How would this affect and ? 1. will remain the same and will increase by 1 percentage point 11. will increase by 1 percentage point and will remain the same II. Both and will decrease by 1 percentage point IV. Both and will remain the same V. Both and will increase by 1 percentage point 2. Now suppose decreases to 5%. The slope of the SML remains constant. How would this affect and ? I will decrease by 1 percentage point and I will remain the same IL will remain the same and will decrease by 1 percentage point III. Both and will increase by 1 percentage point IV. Both and will remain the same V. Both t and will decrease by 1 percentage point 1.1. Now assume that remains at 6, but he increases to 11%. The slope of the SML does not remain constant. How would these changes affect n? Round your answer to one decimal place Module 5 Homework III. Both and will decrease by 1 percentage point. IV. Both and will remain the same V. Both and will increase by 1 percentage point. Select 2. Now supposer decreases to 5%. The slope of the SML remains constant. How would this affect and ? 1. will decrease by 1 percentage point and will remain the same II. T will remain the same and will decrease by 1 percentage point. III. Both and will increase by 1 percentage point. IV. Both and will remain the same. V. Both 14 and will decrease by 1 percentage point. 1. 1. Now assume that remains at 6%, but increases to 11%. The slope of the SML does not remain constant. How would these changes affect n? Round your answer to one decimal place The new i will be 2. Now assume that remains at 64, but ne falls to 9%. The slope of the SML does not remain constant. How would these changes affect ? Round your answer to one decimal place The new will be Grade it Now Save & Continue Continue without saving