the orange one is 1.2, 10.4; slope: 4.50, Y-intercept 5

11. Changesto the security market line The following graph plots the current security market line (SML) and indicates the return that investors require from holding stock from Happy Corp. (HC) Based on the graph, complete the table that follows. (Tool tip: Mouse over the points in the graph to see their coordinates.) An analyst belleves that inflation is ooing to increase by 3.20% over the next year, while the market risk premlum will be unchanged. The analyst uses the Capital Asset Pricing Model (CAPM). The following graph plots the current SML. Calculate Hasoy Corp.'s new required retum. Then, on the graph, use the rectangle symbols to plot the new sML suggested by this analyst's prediction. (Tool tip: Mouse over the points in the graph to see their coordinates.) Happy Corp.'s new required rate of return is