Now suppose rRF increases to $5\%.$ The slope of the SML remains constant. How would this affect rM and rUT?

I. rM will increase by $1$ percentage point and rUT will remain the same.

II$.$ Both rM and rUT will decrease by $1$ percentage point.

III. Both rM and rUT will remain the same.

IV$.$ Both rM and rUT will increase by $1$ percentage point.

V$.$ rM will remain the same and rUT will increase by $1$ percentage point.