Please provide step by step guidance on how to create a graph in excel to...
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Finance
Please provide step by step guidance on how to create a graph in excel to show the following:
n. (1) Suppose the risk-free rate goes up to 7%. What effect would higher interest rates have on the SML and on the returns required on high-risk and low-risk securities? (2) Suppose instead that investors risk aversion increased enough to cause the market risk premium to increase to 8%. (Assume the risk-free rate remains constant.) What effect would this have on the SML and on returns of high-and low-risk securities?
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You can see the logs in the Dashboard.