12 REQUIRED RATE OF RETURN Suppose rRF 4%,N 10%, and bi-14 a. What is r...

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12 REQUIRED RATE OF RETURN Suppose rRF 4%,N 10%, and bi-14 a. What is r the required rate of return on Stock i? b. Now suppose that rRF (1) increases to 5% or (2) decreases to 3%. The slope of the SML remains constant. How would this affect rM and r? Now ass ume that rRF remains at 4%, but rM (1) increases to 12% or (2) falls to 9%. The c. slope of the SML does not remain constant. How would these changes affect r

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