Suppose investors believe that the standard deviation of the market-index portfolio has increased by 50%. What does

Question:

Suppose investors believe that the standard deviation of the market-index has increased by 50%. What does the CAPM imply about the effect of this change on the required rate of return on Google's investment projects?
Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...