Suppose IRF = 6%, I'M = 10%, and b = 1.3. a. What is n, the required rate of return on Stock i? Round your answer to one decimal place. % b. 1. Now suppose rrf increases to 7%. The slope of the SML remains constant. How would this affect rm and n? I. rm will increase by 1 percentage point and n will remain the same. II. Both rm and will decrease by 1 percentage point. III. Both rm and n will remain the same. IV. Both rm and n will increase by 1 percentage point. V. I will remain the same and i will increase by 1 percentage point. -Select- 2. Now suppose TRF decreases to 5%. The slope of the SML remains constant. How would this affect rm and n? I. Both rm and will decrease by 1 percentage point. II. rm will decrease by 1 percentage point and n will remain the same. III. rm will remain the same and will decrease by 1 percentage point. IV. Both rm and will increase by 1 percentage point. V. Both rm and will remain the same. -Select- c. 1. Now assume that rrr remains at 6%, but r 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. will be %. The new 2. Now assume that ref remains at 6%, but rm 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 %