7-9. Required Rate of Return Suppose IRF 9%, IM = 14%, and b; = 1.3. a. What is ry, the required rate of return on Stock i? Answer b. Now suppose TRF (1) increases to 10% or (2) decreases to 8%. The slope of the SML remains constant. How would this affect Im and I; ? Answer c. Now assume Irr remains at 9% but Im (1) increases to 16% or (2) falls to 13%. The slope of the SML does not remain constant. How would these changes affect T