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 ref = 3%, rm = 13%, and but = 2.2. a. Under current conditions, what is rut, the required rate of return on UT Stock? Round your answer to two decimal places. b. 1. Now suppose IRF increases to 4%. The slope of the SML remains constant. How would this affect rm and RUT? I. Both rm and run will decrease by 1%. II.Both PM and run will remain the same. III. Both rm and run will increase by 1%. IV. I will remain the same and rut will increase by 1%. V. rm will increase by 1% and rut will remain the same. -Select- 2. Now suppose of decreases to 2%. The slope of the SML remains constant. How would this affect rm and nut? I. Both rm and run will remain the same. II. Both rm and run will decrease by 1%. III. IM will decrease by 1% and run will remain the same. IV. IM will remain the same and run will decrease by 1%. V. Both rm and rut will increase by 1%. -Select- C. 1. Now assume rrr remains at 3% but rm increases to 15%. The slope of the SML does not remain constant. How would these changes affect rut? I. Put will remain the same. II. Tut will increase by 4.4%. III. Cut will decrease by 4.4%. -Select- 2. Now assume rrr remains at 3% but im falls to 12%. The slope of the SML does not remain constant. How would these changes affect rut? I. Put will decrease by 2.2%. II. PUT will remain the same. III. Put will increase by 2.2%. -Select