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(Solved): Suppose rRF = 5%, rM = 12%, and bi = 1.7. What is ri, the required rate of return on Stock i? Round ...



Suppose rRF = 5%, rM = 12%, and bi = 1.7. What is ri, the required rate of return on Stock i? Round your answer to one decimal place. % 1. Now suppose rRF increases to 6%. The slope of the SML remains constant. How would this affect rM and ri? Both rM and ri will remain the same.Both rM and ri will increase by 1 percentage point.rM will remain the same and ri will increase by 1 percentage point.rM will increase by 1 percentage point and ri will remain the same.Both rM and ri will decrease by 1 percentage point.



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