Required Rate of Return As an equity analyst you are concerned with what will happen to the required return to Universal Toddler stock as market conditions change. Suppose F = 7%, - 13%, and but = 1.7. a. Under current conditions, what is nur, the required rate of return on UT Stock? Round your answer to two decimal places. b. 1. Now suppose FR increases to 8%. The slope of the SML remains constant. How would this affect and UT? I. Both and nur will decrease by 1%. II. Both and run will remain the same. III. Both and lut will increase by 1%. IV. T will remain the same and put will increase by 1%. V. T will increase by 1% and nut will remain the same. Select 2. Now suppose nur decreases to 6%. The slope of the SML remains constant. How would this affect and rur? I. T will remain the same and put will decrease by 1% II. Both and lut will increase by 1%. III. Both and run will remain the same. IV. Both and nut will decrease by 1% V. T will decrease by 1% and Put will remain the same 1. Now assumere remains at 7% but increases to 15%. The slope of the SML does not remain constant. How would these changes affect rur? I. TUT will increase by 3.4% II. Tu will remain the same. III. Tur will decrease by 3.4% 2. Now assume the remains at 7% but fails to 12%. The slope of the SML does not remain constant. How would these changes affect Tut? 1. Put will decrease by 1.7% II. Tu will remain the same III. Ut will increase by 1.7% -Select