To bring down the rising U$.$S$.$ inflation rate, the Federal Reserve Bank $($US Central Bank$)$ has raised the federal fund interest rate eleven times which led to higher risk$-$free rate and other market interest rates such as mortgage rates and prime interest rates. $($a$)$ How would the rising interest rates affect the two main drivers of the firm's stock price, namely, future growth rate of earnings $($g$)$ and cost of capital $($k$)($see discussion in chapter $7)?($b$)$ What effect this higher risk$-$free rate would likely have on the required returns and stock prices of technology and financial firms according to the predictions of CAPM as shown in Figure $6-10?$ Limit your answers to $20$ sentences.