Business
Business, 29.02.2020 04:56, tylerwayneparks

8-12 REQUIRED RATE OF RETURN Suppose rRF 9%, rM 14%, and bi 1 3. a. What is ri, the required rate of return on Stock i? b. Now suppose that rRF (1) increases to 10% or (2) decreases to 8%. The slope of the SML remains constant. How would this affect rM and ri? c. Now assume that rRF remains at 9%, but rM (1) increases to 16% or (2) falls to 13%. The slope of the SML does not remain constant. How would these changes affect ri?

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8-12 REQUIRED RATE OF RETURN Suppose rRF 9%, rM 14%, and bi 1 3. a. What is ri, the required rate of...

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