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Required Rate of Return Under cuerent condtions, what is rut, the required rate of return on ut stock? Round your answer to ote decimal place.

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Required Rate of Return Under cuerent condtions, what is rut, the required rate of return on ut stock? Round your answer to ote decimal place. 1. Now supsose for increases to 6%. The market risk premium, Mret (i.e, the slope of the Smet) remains constant. How would this aftect me and hut? 1. Both rie and nut will decrease by 1 percentage point. Ix. both ne and nu will remein the same. III. Both m and fut mil increase by 1 sercentage coint. TV. Tis will remein the same and rur mil increake by 1 percentage point. V. ne will increase by 1 percentage point and rut will remain the same. 2. Now suppore nu decreases to 444. The market risk premium, 2hi, (i.e., the siope of the 5ML) remeins constant, Hoa would this affect ny and rut? 1. ni wat decrease by t perteriage point and ruy aill remain the same 11. ne will remain the same and rut will decrease by 1 percentage ocint, Iit. Doth ne and fur will increase by 1 percentaje polit. IV. both nu and rut will remein the same: V. Hoth ra and rur wil deciense by 1 perceetage point. Fur? 1. fy will decesese by 3 . . perctentage point. II. rut wil remein the came. fit. Tyt wilt incinsase by 3 in percentage point. 1. rit wall decrease by 1.9 percentage point: 13. fur will remain the same. IXx. hir will harease by 1.9 percertage point

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