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Supposers = 8%, n = 13%, and b = 2.1. a. What is the required rate of return on Stock i? Round your answer to
Supposers = 8%, n = 13%, and b = 2.1. a. What is the required rate of return on Stock i? Round your answer to two decimal places. % b. 1. Now suppose the increases to 9%. The slope of the SML remains constant. How would this affect and n? 1. Both rand n will increase by 1%. II. rm will remain the same and n will increase by 1%. III. T will increase by 1% and n will remain the same. IV. Both rm and will decrease by 1% V. Both rand n will remain the same. -Select- 2. Now suppose for decreases to 7%. The slope of the SML remains constant. How would this affect and n? I. I will remain the same and will decrease by 1%. II. Both rand o will increase by 1%. III. Both rm and will remain the same. IV. Both rm and will decrease by 1%. V. rm will decrease by 19 and n will remain the same. -Select- c. 1. Now assume that are remains at 8%, but increases to 14%. The slope of the SML does not remain constant. How would these changes affect n? Round your answer to two decimal places. The new n will be %. 2. Now assume that are remains at 8%, but im falls to 12%. The slope of the SML does not remain constant. How would these changes affect n? Round your answer to two decimal places. The new n will be %
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