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 rRF4%, I'm = 8%, and bUTI-1.8. 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 5%. The slope of the SML remains constant. How would this affect rM and rum2 Select- I. Both I'm and rUTI will increase by 1%. 11. rM will remain the same and rUTI will increase by 1%. III. rM will increase by 1% and ruTI will remain the same. IV. Both TM and rUTI will decrease by 196. V. Both rM and ruTI will remain the same. Suppose rRF decreases to 3%. The slope of the SML remains constant. How would this affect n, and nm? Select- I. Both I'm and rUTI will decrease by 1%. 11. rM will decrease by 1% and rUTI will remain the same 111. I'm will remain the same and rUTI will decrease by 1%. IV. Both TM and rUTI will increase by 1%. V. Both rM and ruTI will remain the same. C. Now assume rRF remains at 4% but I'm increases to 10%. The slope of the SML does not remain constant. How would these changes affect ruT1? -Select- rUTI will decrease by 3.6%. II. ruTI will remain the same. 111. rUTI will increase by 3.6%