3. Problem 212(equired Rate of Return) Problem walk through Sur 45, 10, and What the...

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3. Problem 212(equired Rate of Return) Problem walk through Sur 45, 10, and What the required to return on Stock it and your answer to one domallace Now support to the slope of the Stramane constant. How world is affect and 1. Both and were the same Both and were typer point I will remain the same and with ty percentage IV will respecte and will remain the same Both and will decrease by 1 percentage Now grew decrease the cope of the content 1 bath and will remain the same I w wie by age and will remain the I will remain the same and will decret percentage Veth and we by age Low mumewe, Score remain wwe con tund your newer an dermato Then will be 2. Nume that remains a 41, but not to the slope of the Shot remain cont des changes afected you to one decimale The will 3. Problem 8.12 (Required Rate of Return) eBook Problem Walk-Through Suppose tu - 4% - 10%, and b = 1.8. a. What is n, the required rate of return on Stock i? Round your answer to one decimal place, % n b. 1. Now suppose Increases to 5%. The slope of the SML remains constant. How would this affect and n? 1. Both rm and will remain the same. 1. Both ry and n will increase by 1 percentage point. III. T will remain the same and n will increase by 1 percentage point. IV. rm will increase by 1 percentage point and n will remain the same V. Both and will decrease by 1 percentage point Select 2. Now suppose to decreases to 3%. The slope of the SML remains constant. How would this affect wala na 1. Both rand n will remain the same 11. Both and will decrease by 1 percentage point. III. TM will decrease by 1 percentage point and n will remain the same. IV. will remain the same and will decrease by 1 percentage point V. Both and n will increase by 1 percentage point. Select c. 1. Now assume that ru remains at 4%, but he increases to 11%. The slope of the SML does not remain constant. How would these changes affect n? Round your answer to one decimal place The new n will be 2. Now assume that ru remains at 4%, but it falls to 9%. The slope of the SML does not remain constant. How would these changes affect ? Round your answer to one decimal place. The new n will be

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