ppose rRF=5%,rM=9%, and bi=1.3 a. What is ri, the required rate of return on Stock i? Round your answer to one decimal place. % b. 1. Now suppose r rf increases to 6%. The slope of the SML remains constant. How would this affect rm and ri ? I. rM will increase by 1 percentage point and ri will remain the same. II. Both rmm and ri will decrease by 1 percentage point. III. Both rm and ri will remain the same. IV. Both rM and ri will increase by 1 percentage point. V. rmM will remain the same and ri will increase by 1 percentage point. 2. Now suppose rRF decreases to 4%. The slope of the SML remains constant. How would this affect rM and ri ? I. Both rM and ri will remain the same. II. Both rm and ri will decrease by 1 percentage point. III. rM will decrease by 1 percentage point and ri will remain the same. IV. rM will remain the same and ri will decrease by 1 percentage point. V. Both rmM and ri will increase by 1 percentage point. The new ri will be % The new ri will be %