Suppose 4%, -13%, and b-16 a. What is r, the required rate of return on Stock (? Round your answer to one decimal place. b. 1. Now suppose rar increases to 5% The slope of the SML remains constant. How would this affect r and 1.7 Lw will increase by 1 percentage point and r, will remain the same. 11. Both rw and will decrease by 1 percentage point 11. Both rw and i will remain the same. IV. Both re and will increase by 1 percentage point Vre will remain the same and r, will increase by 1 percentage point. 2. Now suppose rar decreases to 3% The slope of the SML remains constant. How would this affect te and ri 1.fw will remain the same and r, will decrease by 1 percentage point. II. Both rw and r, will increase by 1 percentage point. III. Both rw and will remain the same IV. Both rw and will decrease by 1 percentage point Vw will decrease ty 1 percintage point and i will remain the same. 1. Now asume that rer remains at 4%, but ru increases to 14%. The slope of the SML does not remain constant. How would these changes affect r7 Round your answer to one decimal place. The new will be 2. Now assume that re remams at 4%, but re falls to 12%. The stope of the SML does not remain constant. How would these changes affect r7 Round your answer to one decimal place The new will be