Required Rate of Return -11%, and but - 1.5. As an equity analyst you are concerned with what will happen to the required return to Universal Toddler' stock as market conditions change. Suppose TRF-5% a. Under current conditions, what is rut, the required rate of return on UT Stock Round your answer to two decimal places b. Now supposere increases to 6%. The slope of the SML remains constant. How would this affect r and FUT? Ir will remain the same and Tut will increase by 1% IL PM will increase by 1% and run will remain the same TIL Both rm and run will decrease by 1%. IV.Both r and FUT will remain the same. V. Both rm and run will increase by 15. and c. Suppose me decreases to 4%. The slope of the SML remains constant. How would this affect -Select- 1. Both rm and run will decrease by 1% IL. will decrease by 1% and FUT will remain the same III. rm will remain the same and Fut will decrease by 1%. IV. Both r and PT will increase by 1% V. Both rand TT will remain the same d. Now assumere remains at 5% but im increases to 13%. The slope of the SML does not remain constant. How would these changes affect tut? 1. PUT will decrease by 3% IL. PUT will remain the same III. Ut will increase by 3% 6. Assume rr remains at 5% but im falls to 10%. The slope of the SML does not remain constant. How would these changes affect rut? 1. PUT will decrease by 1.5% IL PUT will remain the same IIL TUT will increase by 1.5% Lehto