18 CAPM Elements Risk-free rate (TLP) Market risk premium (RPM) Happy Corp, stock's beta Required rate of return on Happ

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18 Capm Elements Risk Free Rate Tlp Market Risk Premium Rpm Happy Corp Stock S Beta Required Rate Of Return On Happ 1 (18.75 KiB) Viewed 23 times

18 CAPM Elements Risk-free rate (TLP) Market risk premium (RPM) Happy Corp, stock's beta Required rate of return on Happy Corp, stock Value An analyst believes that inflation is going to increase by 2.0% 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 return is Took tip: House over the points in the graph to see their coordinates.