Required Rate of Return As an equity analyst you are concerned with what will happen to the required return to Universal Toddler Industries stock as market conditions change. Suppose rRF = 8%, IM = 9%, and BUTI = 1.9. a. Under current conditions, what is rUTI, the required rate of return on UTI Stock? Round your answer to two decimal places. 9.9 % b. Now suppose rrf increases to 9%. The slope of the SML remains constant. How would this affect rm and ruti? I. Im will remain the same and PUTI will increase by 1%. II. IM will increase by 1% and rutI will remain the same. III. Both rm and PUTI will decrease by 1%. IV.Both rm and UTI will remain the same. V. Both rm and ruI will increase by 1%. Suppose IRF decreases to 7%. The slope of the SML remains constant. How would this affect rm and ruTI? IIA I. IM will decrease by 1% and UTI will remain the same. II. IM will remain the same and rutI will decrease by 1%. III. Both rm and UTI will increase by 1%. IV. Both rm and rUTI will remain the same. V. Both rm and UTI will decrease by 1%. c. Now assume rrr remains at 8% but rm increases to 11%. The slope of the SML does not remain constant. How would these changes affect RUTI? II I. GUTI will remain the same. II. GUTI will increase by 3.8%. III. RUTI will decrease by 3.8%. Assume rrr remains at 8% but rm falls to 8%. The slope of the SML does not remain constant. How would these changes affect RUTI? III I. RUTI will increase by 1.9%. II. RUTI will remain the same. III. RUTI will decrease by 1.9%