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Now assume rrf remains at 9 but rm 1 increases to 16 or 2

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suppose rRF=9% rM=14% and bi=1.3
required rate of return is 15.5%

Now assume 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?

Reference no: EM13566538

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