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The following graph plots the current security market line (SML) and indicates the return that investors require from holding stock from Hap (HC) Based on

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The following graph plots the current security market line (SML) and indicates the return that investors require from holding stock from Hap (HC) Based on the graph, complete the table that follows. (Tooltip: Mouse over the points in the graph to see their coordinates.) 2 200 160 120 REQUIRED RATE OF RETURN(Percent) 8,0 40 05 15 20 10 RISK (Beta) Value CAPM Elements Risk-free rate (TRE) 104.40 2.20 Market risk premium (RPM) 617.894.5/10.8 Happy Corp. stock's beta 0:30 0.910.670.48 Required rate of return on Happy Corp. stock 951646 110.64/2.60 An analyst believes that inflation is going to increase by 4.00% over the next year, while the market risk premium will be unchanged. The analyst uses the Capital Asset Pricing Model (CAPM). The following graph plots the current SML Calculate Happy Corp. 's new required return. Then, on the graph, use the rectangle symbols to plot the new SML Suggested by this analyst's prediction. (Tooltip: mouse over the points in the graph to see their coordinates.) Happy Corp's new required rate of return is 12.76% 26.68% 11.60 8.12% New 5ML (? 20 16 New SML 12 REQUIRED RATE OF RETURN (Percent) 8 ce 0.4 16 20 08 1.2 RISK (Beta)

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