Suppose 6% = 10%, and i 12 3. What is n, the required rate of return on Stock i? Round your answer to one decimal place 10.8 b. 1. Now suppose the increases to 7%. The slope of the SML remains constant. How would this affect rm and n? 1. Bothm and n will remain the same. 11. Both and n will increase by 1 percentage point II. will remain the same and will increase by 1 percentage point IV. n will increase by 1 percentage point and i will remain the same V. Both me and in wil decrease by 1 percentage point. 11 2. Now suppose roe decreases to 5%. The slope of the SM remains constant. How would this affect rm and n? I. Both rand n will increase by 1 percentage point. II Both and n will remain the same TIL. Both and will decrease by 1 percentage point IV. I will decrease by 1 percentage point and n will remain the same. V.ru will remain the same and will decrease by 1 percentage point. INT c 1. Now assume that ray remains at 6%, but increases to 11% The slope of the SML does not remain constant. How would these changes affect n? Round your answer to one decimal place The new n will be 2. Now assume that was remains at 64, but the falls to 9%. 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