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Supposera;n4%[m-9%,andhirni.9.' V ' ' 3. W965: the required rate of retum on Stock i? Round your answer be one decimal place. . lo . l
Supposera;n4%[m-9%,andhirni.9.' V ' ' 3. W965\": the required rate of retum on Stock i? Round your answer be one decimal place. . \"lo . l 7777',\" .I b. 1. Now suppose rm: increases to 5%. The slope of the SML remains constant. How would We affect rm and n? l m will inaease by 1 percentage point and n will remain the same. Both m and n will decrease by 1 percentage point. Both m and n will increase by 1 percentage point. I. II. 11]. Both m and 11 Will remain the same. IV. V- In will remain thesame and n will increase by 1, percentage point. , . select-V I , l ' I 4 ' V . , . 2. New seppose rar- decreases be 3%. The slope of the SML remains constant. How would this affect or and' n? 1. Both m and n will decrease by 1 percentage point. 11. m will decrease by 1 percentage point and n will remain the same. III. run will remain the same and n will decrease by 1 percentage point. . IV. Both m and n will increase by 1 percentage-point. ~ ' I i V. Both rM and. r. will remain the same. . a > i 7 . ' . _ c. 1. Now assume that my remains at 4%, but m increases to 10%. The slope of the SML does not remain constant. How would these changes affect n? Round your answer to one decimal place. The new n will be \"lo. 2. Now assume that rm: remains at 4%, but m falls to 8%. The slope of the SML does not remain constant. How would these changes affect n7 Round your answer to one decimal place. The new n will be \"A
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