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Suppose rrf 9 rm 14 and beta 13a what is the required rate

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Suppose rRF= 9%, rM= 14%, and Beta 1.3A) What is the Required Rate of Return on Stock i ?B) Now suppose the Req Rate of Return increases (1) to 10% or (2) decreases to 8%. The slope of the SML remains constant. How would this affect rM and Required Rate of Return on Stock i ?C) Now assume the Req Rate of Return 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 Required Rate of Return on Stock i ?Please show work and explain how you got this.

Reference no: EM13483031

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