bose rRF = 4%, IM = 9%, and b = 1.3. a. What is ri, the required rate of return on Stock i? Round your answer to one decimal place. % b. 1. Now suppose rrf increases to 5%. The slope of the SML remains constant. How would this affect rm and n? I. r will increase by 1 percentage point and i will remain the same. II. Both rm and i will decrease by 1 percentage point. III. Both I'm and n will remain the same. IV. Both rm and r, will increase by 1 percentage point. V. I will remain the same and i will increase by 1 percentage point. -Select- 2. Now suppose rre decreases to 3%. The slope of the SML remains constant. How would this affect rm and n? I. rm will remain the same and i will decrease by 1 percentage point. II. Both rm and will increase by 1 percentage point. III. Both rm and n will remain the same. IV. Both rm and will decrease by 1 percentage point. V. r will decrease by 1 percentage point and will remain the same. -Select- v C. 1. Now assume that ree remains at 4%, but rm increases to 10%. The slope of the SML does not remain constant. How would these changes affect ri? Round your answer to one decimal place. The new r will be %. 2. Now assume that rri remains at 4%, but im falls to 8%. The slope of the SML does not remain constant. How would these changes affect n? Round your answer to one decimal place. The new n will be %