Question

suppose rRF=9%, rM=14%, and bi=1.3.
A. what is ri, the required rate of return on Stock i?
B. Now suppose rRF (1) increases to 10% or (2) decreases to 8%. The slope fo the SML remains constant. How would this affect rM and ri?
C. Now assume rRF 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 ri?

Answer 1

what do you need done

Answer 2

hey I found this online

Answer 3

thanks so much moser

Answer 4

your welcome I think it has the same problem you are looking for

Answer 5

It sure does