The following groph plots the current security market line (5ML) and indicates the retum that imvestort require irome holding stock fram Happy Corp. (HC). Baved on the graph, complete the table that fallows: the Capial Aset Fricing Model (Cor). The tollowng graph plsts the comere sM. Celculate Hagpr Corp 's new inquired refum. Theny on the oraph, we the grem geints (reclangle aymisols) bo plot bhe new swe. susgeatnd by thi onwyets aredction. Happy Corpis ree reculied rate of retum it Tbol eis- Mavse over the poins on the graph ta sect ther coordinates An analyst believes that infation is going to increase by 2.0% over the next year, while the market risk premium will be unchanged. The analyst uses the Capital Asset Pricing Model (CAPM). The following gragh plots the current sML. Calculate Mappy Corpis new required return. Then, on the graph, use the green points (rectangle symbels) to plot the new sml suggested by this andystis prediction. Happy Corpis new reculred rate of returm is Tool bp: Mouse over the peints on the graph to see their coordinates. the level of mak aversion. Which of the blowing statemerita lest describes the shage of the SML. If investors were not at al figk averse? The trML weuld be w horizontal line: The SMC woul have a potitive dooe, but the sloee would be fatier that it would be I itresbors weie nok bverse The sHL would have a gositqe slope, but the cloge would be werper than it would be if investoro were rik drerae. The following groph plots the current security market line (5ML) and indicates the retum that imvestort require irome holding stock fram Happy Corp. (HC). Baved on the graph, complete the table that fallows: the Capial Aset Fricing Model (Cor). The tollowng graph plsts the comere sM. Celculate Hagpr Corp 's new inquired refum. Theny on the oraph, we the grem geints (reclangle aymisols) bo plot bhe new swe. susgeatnd by thi onwyets aredction. Happy Corpis ree reculied rate of retum it Tbol eis- Mavse over the poins on the graph ta sect ther coordinates An analyst believes that infation is going to increase by 2.0% over the next year, while the market risk premium will be unchanged. The analyst uses the Capital Asset Pricing Model (CAPM). The following gragh plots the current sML. Calculate Mappy Corpis new required return. Then, on the graph, use the green points (rectangle symbels) to plot the new sml suggested by this andystis prediction. Happy Corpis new reculred rate of returm is Tool bp: Mouse over the peints on the graph to see their coordinates. the level of mak aversion. Which of the blowing statemerita lest describes the shage of the SML. If investors were not at al figk averse? The trML weuld be w horizontal line: The SMC woul have a potitive dooe, but the sloee would be fatier that it would be I itresbors weie nok bverse The sHL would have a gositqe slope, but the cloge would be werper than it would be if investoro were rik drerae
