Yesterday Susan determined that the risk-free rate of return, rRF, is 3%the required return on the market portfolio, rM, is 10%, and the required...

Yesterday Susan determined that the risk-free rate of return, rRF, is 3%，the required return on the market portfolio, rM, is 10%, and the required rate of return on Stock K, rK, is 17%. Today Susan received new information that indicates investor are more risk averse than she thought, such that the market risk premium, RPm, actually is 1% higher than she estimated yesterday. when susan considers the effect of this change in risk premium, what will she determine the new rK to be

Question:Yesterday Susan determined that the risk-free rate of return, rRF, is 3% , the required return on the market portfolio, rM, is10%, and the required rate of return on Stock K, rK, is 17%....