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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 Hapey Corp. (HC). Based

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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 Hapey Corp. (HC). Based on the graph, complete the table that follows: An analyst bebeves that inflation is going to increase by 3.0% over the next year, while the market risk premium will be unchanged. The analyst uses the Capital Asvet Pricing Modes (CAPM). The following graph plots the current SML. Calcalate Happy Corp.'s new required return. Then, on the graph, wse the green points (rectangle symbols) to plot the new 5m. suggested by this analystes prediction. Happy Corp.'s new required rate of return is Tool tip: Mouse over the points on the graph to see their coordinates, The sus. helos determene the leved of ritk averuen among inmutors. The higher the level of mok aversion, the the sope of the sMt. Which kind of stock is mont affected by changes in risk awerwan? (in other wordw, which stocks sce the bogest change in their requered returno?) Low beta stiods High beta stods Modum-beta stoda Al sopds affected the same, regurdess of brta

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