1) Required rate of return. Suppose FRF = 9%, TM = 14%, and b = 1.3. a) What is ri, the required rate of return on Stock i? (15.5%) b) Now suppose TRF (1) increases to 10 percent or (2) decreases to 8 percent. The slope of the SML remains constant. How would this affect M and r;? (15%, 16.5%; 13%, 14.5%) c) Now assume RF remains at 9 percent but M (1) increases to 16 percent or (2) falls to 13 percent. The slope of the SML does not remain constant. How would these changes affect r? (18.1%; 14.2%)