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Supposerer = 4%, -10%, and b - 1.2. a. What is the required rate of return on Stock I? Round your answer to one decimal
Supposerer = 4%, -10%, and b - 1.2. a. What is the required rate of return on Stock I? Round your answer to one decimal place. b. 1. Now suppose to increases to 5%. The slope of the SML remains constant. How would this affect and n? 1. will increase by 1 percentage point and will remain the same. II. Both rand will decrease by 1 percentage point. III. Both and will remain the same IV. Both rand n will increase by 1 percentage point. V. Te will remain the same and will increase by 1 percentage point -Select 2. Now suppose to decreases to 3%. The slope of the SML remains constant. How would this affect and ? 1. I 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 rand n will increase by 1 percentage point. IV. Both and will remain the same. V. Both and will decrease by 1 percentage point. -Select- c. 1. Now assume that remains at 4%, but increases to 11%. 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 % 2. Now assume that for remains at 4%, but fails 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
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