The following graph plots the current secunty market line (SMC) and indicates the return that investors require from halding stock from Happy Corp. (tiC). Based on the graph, complete the rable that follows: An analyst believes that inflation is going to increase by 3.0% over the next year, while the market risk premium will be unchanged. The analyst uses. the Capital Asset Pricing Model (CAPM). The following graph plots the current SML Calculate Happy Corp.'s new required return. Then, on the graph, use the green points (rectangle symbols) to plot the new SML. suggested by this analyst's prediction. Happy Corp.'s new required rate of retum is Tool tip: Mouse over the points on the graph to see their coordinates. The 5MML helps determine the risk-aversion level among investors. The higher the level of risk-aversion, the the slope of the 5ML Which of the following statements best describes a shuft in the SML caused by increased risk aversion? The isk free rate will increase. The risk-free rate will remain constant. The risk-free rate will decrease. The following graph plots the current secunty market line (SMC) and indicates the return that investors require from halding stock from Happy Corp. (tiC). Based on the graph, complete the rable that follows: An analyst believes that inflation is going to increase by 3.0% over the next year, while the market risk premium will be unchanged. The analyst uses. the Capital Asset Pricing Model (CAPM). The following graph plots the current SML Calculate Happy Corp.'s new required return. Then, on the graph, use the green points (rectangle symbols) to plot the new SML. suggested by this analyst's prediction. Happy Corp.'s new required rate of retum is Tool tip: Mouse over the points on the graph to see their coordinates. The 5MML helps determine the risk-aversion level among investors. The higher the level of risk-aversion, the the slope of the 5ML Which of the following statements best describes a shuft in the SML caused by increased risk aversion? The isk free rate will increase. The risk-free rate will remain constant. The risk-free rate will decrease