8-12 REQUIRED RATE OF RETURN Suppose rRF 4%, rM 10%, and bi 1.4 a. What is ri, the required rate of return on Stock i? b. Now suppose that rRF (1) increases to 5% or (2) decreases to 3%. The slope of the SML remains constant. How would this affect rM and r? c. Now assume that rRF remains at 4%, but rM (1) increases to 12% or (2) falls to 900. The slope of the SML does not remain constant. How would these changes affect r