opose rRP=6%,rM=12%, and bt=1.9 a. What is ri, the required rate of return on Stock i? Round your answer to one decimal place. 10 b. 1. Now suppose rat increases to 7%. The slope of the SML remains constant. How would this affect rM and n? I. rm will increase by 1 percentage point and r, will remain the same. II. Both Fm and r1 will decrease by 1 percentage point. III. Both rM and r1 will remain the same. IV. Both rM and ri will increase by 1 percentage pointi V. rm will remain the same and r1 will increase by 1 percentage point. 2. Now suppose ras decreases to 5%. The slope of the SML remains constant. How would this affect rm and r? 1. rm will decrease by 1 percentage point, and r, will remain the same. 11. rm will remain the same and r will decrease by 1 percentage point. 1II. Both Fm and r will increase by 1 percentage point. IV. Both rm and n will remain the same. V. Both rm and r will decrease by 1 percentage point. 6. 1. Now assume that rar remains at 6%, but tr increases to 13%. The slope of the SML does not remain constant. How would these chariges affe ni? Round your answer to one decimal place. The new r, will be %. 2. Now assume that res remains at 6%, but nu falls to 11%. The stope of the 5ML does not remain constant, How would these changes aifect n ? Round your answer to one decimal place. The new ri will be