Suppose 3%, ne 11%, and b 1.9. What is the required rate of return on Stock 17 Round your answer to one decimal place. b. 1. Now suppose nu increases to 4%. The slope of the SML remains constant. How would this affect rw and n I will increase by 1 percentage point and n will remain the same. 11. Both he and will decrease by 1 percentage point. III. Both he and r, will remain the same. IV. Both and will increase by 1 percentage point. Vw will remain the same and n will increase by 1 percentage point. V Now suppose rar decreases to 2%. The slope of the SML remains constant. How would this affect ne and? 1.ne will remain the same and r, will decrease by 1 percentage point 11. Both r and n will increase by 1 percentage point. 11. Both and will remain the same IV. Both r and will decrease by 1 percentage point V. will decrease by 1 percentage point and r, will remain the same. N V 1. Now assume that ru remains at 3%, but increases to 12% The slope of the SML does not remain constant. How would these changes affect ? Round your answer to one decimal pl The new will be N 2. Now assume that re remains at 3%, but ne falls to 10%. The supe of the SML does not remain constant. How would these changes affect r? Round your answer to one decimal place. The new ti will be