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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?
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thanks so much moser
your welcome I think it has the same problem you are looking for
It sure does
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