Suppose investors believe that the standard deviation of the market-index portfolio has increased by 50%. speculate on two potential implications of the security market line (sml) and capm regarding the effect of this change on the required rate of return for a company's investment projects.2. compare the returns of the two selected funds for the past 10 years. determine whether you believe that the fama-french (ff) three-factor model should or should not be rejected. explain why or why not.

T-comm makes a variety of products. it is organized in two divisions, north and south. the managers for each division are paid, in part, based on the financial performance of their divisions. the south division normally sells to outside customers but, on occasion, also sells to the north division. when it does, corporate policy states that the price must be cost plus 20 percent to ensure a "fair" return to the selling division. south received an order from north for 300 units. south's planned output for the year had been 1,200 units before north's order. south's capacity is 1,500 units per year. the costs for producing those 1,200 units follow