Problem Waik- Suppose 4%, 10%, and by 1.4. a. What is the required rate of return on Stock I? Round your answer to one decimal place. 96 b. 1. Now suppose to increases to 5%. The slope of the SML remains constant. How would this affect and ? 1. Both and n will increase by 1 percentage point II. n will remain the same and will increase by 1 percentage point, III. will increase by 1 percentage point and will remain the same. IV. Both and will decrease by 1 percentage point V. Both and n will remain the same 2. Now suppose to decreases to 3%. The slope of the SML remains constant. How would this affect and n? I ne will remain the same and will decrease by 1 percentage point. II Both rand n will increase by 1 percentage point III. Both n and n will remain the same. IV. Both and will decrease by 1 percentage point. V. he will decrease by 1 percentage point and n will remain the same Select C. 1. Now assume that re remains at 4%, but the increases 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 n will be 2. Now assume that remains at 4%, but falls to 9%. The slope of the SML does not remain constant. How would these changes affect n? Round your answer to one decimal place The new n will be