As an equity analyst you are concerned with what will happen to the required return to Universal Toddler Industries stock as market conditions change. Suppose tre = 6%, IM 9%, and buti = 1.2. a. Under current conditions, what is ruti, the required rate of return on UTI Stock? Round your answer to two decimal places. % b. Now suppose rrf increases to 7%. The slope of the SML remains constant. How would this affect rm and PUTI? -Select- I. Both rm and rutI will decrease by 1%. II. Both rm and ruti will remain the same. III. Both rm and nuts will increase by 1%. IV. r will remain the same and ruts will increase by 1%. V. rm will increase by 1% and ruti will remain the same. Suppose rof decreases to 5%. The slope of the SML remains constant. How would this affect r and RUTI? -Select- I. Both rm and ruti will decrease by 1%. II. will decrease by 1% and rutI will remain the sale. III. will remain the same and ruti will decrease by 1%. IV. Both rm and run will increase by 1%. V. Both rm and run will remain the same. c. Now assume rrf remains at 6% but increases to 11%. The slope of the SML does not remain constant. How would these changes affect ruti? -Select- I. RUTI will increase by 2.4%. II. TUTI will remain the same. III. TUTI will decrease by 2.4%. Assume ref remains at 6% but im falls to 8%. The slope of the SML does not remain constant. How would these changes affect TUTI? -Select- I. RUTI will remain the same. II. TUTI will decrease by 1.2%. III. TUTI will increase by 1.2%