eBook Problem Walk-Through Suppose TRF = 6%, TM= 13%, and b = 1.4. a. What is ri, the required rate of return on Stock 17 Round your answer to one decimal place. % b. 1. Now suppose TRF increases to 7%. The slope of the SML remains constant. How would this affect rm a 1. Both rm and n will increase by 1 percentage point. II. TM will remain the same and n will increase by 1 percentage point. III. TM will increase by 1 percentage point and n will remain the same. IV. Both TM and will decrease by 1 percentage point. n V. Both TM and r will remain the same. -Select- v 2. Now suppose TRF decreases to 5%. The slope of the SML remains constant. How would this affect rm a I. TM will remain the same and will decrease by 1 percentage point. II. Both rm and ri will increase by 1 percentage point. III. Both TM and r will remain the same. IV. Both rm and i will decrease by 1 percentage point. V. TM will decrease by 1 percentage point and r will remain the same. -Select- v c. 1. Now assume that TRF remains at 6%, but rm increases to 14%. The slope of the SML does not remain c Round your answer to one decimal place. The new ri will be %. 2. Now assume that FRF remains at 6%, but rM falls to 12%. The slope of the SML does not remain consta vour answer to one decimal nlace