The risk$-$free rate is $4\mathrm{.}3\%,$ the return on the market $15\%,$ and the beta of a stock is $\mathrm{.}7.$

$1.$ Caculate the required rate of return.

$2.$ Calculate the market risk premium and the security risk premium.

$3.$ Graph the security market line.

$4.$ Identify on the graph the market risk premium and the security risk premium.

$5.$ What is the effect of a decrease in the inflation rate on the SML$?$