pose hy=3%,hid12%, and b=1.4 a. What is n. the required rate of retum on Stock i? Round your answer to one decimal piace. b. 1. Now suppose no increases to 4%. The slope of the SML remains constant. How would this affect for and n? 1. Both ra and n will decrease by 1 percentage point. 11. Both tm and n will remain the same. IIt. Both na and n will increase by 1 percentage point. IV. on will remain the same and n will increase by 1 percentage point. V. na will increase by 1 percentage point and n will remain the same. 2. Now suppose nur decreases to 2%. The slope of the SML remains constant. How would this affect fu and n ? 1. Both the and n will decrease by 1 percentage point. II. hi will decreave by 1 percentage point and n will remain the same. III. in will remaln the same and n will decrease by 1 percentage point. TV. Both ne and fi will increase by 1 percentage point. V. Both ne and n will remain the same. c. 1. Now astume that ru remains at 3\%, but ne increases to 13%. The slope of the sMi. does not remain constant. How would these changes affect n? Mound your answer to one decimal biace. The new fo will be Wir 2. New assume that fur remains at 3\%, but nu fails to 11%. The slope of the SML does not remain constant. How would these changes affect n? Round your answer to one decimal place: The new ti will be \&