10. Problem 8.12 (Required Rate of Return) eliook Problem Walk Through Suppose = 3% - 10%, and b 1.7. a. What is the required rate of return on Stock 17 Round your answer to one decimal place. % b. 1. Now suppose to increases to 44. The slope of the SML remains constant. How would this affect and na I. Tu will remain the same and will increase by 1 percentage point II. Will increase by 1 percentage point and will remain the same. III. Both and will decrease by 1 percentage point. IV. Both and will remain the same. V. Both and will increase by 1 percentage point. Select 2. Now suppose to decreases to 2%. The slope of the St. remains constant. How would this affectuand ? 1. Both and will decrease by 1 percentage point. II. I will decrease by 1 percentage point and n will remain the same III. T will remain the same and will decrease by 1 percentage point IV. Both and will increase by 1 percentage point. V. Both and will remain the same. c. 1. Now assume that remains at 34, but the increases to 11%. The slope of the SML does not remain constant. How would these changes affect ? Round your answer to one decimal place The new n will be 2. Now assume that remains at 3, but falls to 9%. The slope of the SML does not remain constant. How would these changes affect Round your answer to one decimal place. The new , will be