iuppose fw=3%,n4=114, and b1=1.4. a. What is n, the required rate of retum on Stock i? Round your answer to one decinal place. b. 1. Now suppose fer increxus to 4%. The slope of the sML. remains constant. How would this affect ne and n ? 1. Both fry and n will remain the same. II. Both. n and n will increase by 1 percentage point. III. im will remain the same and n will increase by 1 percentage point. TV. rm will increase by 1 percentage point and n will remain the same. V. Both ni and n wid decrease by 1 percontage point. 2. Now suppose nu decreases to 26 . The slope of the SML remains constant, How would this affect in and n ? 1. Both fre and n wilt increase by 1 percentage point. 17. Both friand in will remain the same. 111. Both m and n witl decrease by 1 percentage point. IV. ny will decrease by 1 percentage point and r4 will remain the same. V. n will remain the same and n will decrease by 1 percentage point. E. 1. Now assume that far remsins at 3\%, but FA increases to 12%. The stope of the SML. does not remain constant. How would these changes affect n? Round you answer to one decimal place. The new n will be \%.: 2. Now assume that nu remains at 3%, but ni falls to 10%. The slope of the 5ML. does not remain conatant. How would these changes affect n ? Round your antwer to one decimal place. The new n will be \%