bpose riv=6%,rM=13%, and bi=1.2. a. What is n. the required rate of retum on Stock l? Round your answer to one decimal place. b. 1. Now suppose fur increases to 7\%. The slope of the SML remains constant. How would this affect fu and n? I. Both r and n will decrease by 1 percentage point. II. Both ry and n will remain the same. IIt. Both r and n will increase by 1 percentage point. IV. fo will remain the same and n will increase by 1 percentage point. V. ni will increase by 1 percentage point and n will remain the same. 2. Now suppose ruv decreses to 5%. The slope of the SML remains constant. How would this affect ruand n? I. Both to and n will increase by 1 percentage point. I1. Both fr and n will remain the same. III. Both tix and n will decrease by 1 percentage point. IV. n will decrease by 1 percentage point and n will remain the same. V. ni well remain the same and n will decrease by 1 percentage point. c. 1. Now assume that ry remains at 64 , but ne increases to 14%. The slope of the SML does not remain constant, How would these changes affect n7 Round your answer to one decitum place. The new ri will be 2. Now assume that fas rembins at 6%, but fu falis to 12%. The slope of the smL toes not remain constant, How would these changes affect n? fround your answer to one decinal place. The nee fi will be