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Suppose 3, 134, and b = 1.3. a. What is the required rate of return on Stock I? Round your answer to one decimal place

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Suppose 3, 134, and b = 1.3. a. What is the required rate of return on Stock I? Round your answer to one decimal place b. 1. Now suppose to increases to 4%. The slope of the SML remains constant. How would this affect and n? 1. will increase by 1 percentage point and n will remain the same II. Both and will decrease by 1 percentage point. III. Both and will remain the same IV. Both and will increase by 1 percentage point V. T will remain the same and n will increase by 1 percentage point. 2. Now suppose to decreases to 2%. The slope of the SML remains constant. How would this affect and n? 1. n will remain the same and will decrease by 1 percentage point. II. Both and will increase by 1 percentage point III. Both and n will remain the same IV. Both and will decrease by 1 percentage point. V. De will decrease by 1 percentage point and will remain the same Select c. 1. Now assume that remains at 3%, but increases to 14%. The slope of the SML does not remain constant. How would these changes affect ? Round your answer to one decimal place The new n will be 2. Now assume that remains at 3%, but falls to 12%. The slope of the SML does not remain constant. How would these changes affect n? Round your answer to one decimal place. The new will be

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