Suppose IRF = 6%, IM = 9%, and bi = 1.1. a. What is ri, the required rate of return on Stock i? Round your answer to two decimal places. % b. 1. Now suppose rrf increases to 7%. The slope of the SML remains constant. How would this affect rm and ri? I. rm will remain the same and ri will increase by 1%. II. PM will increase by 1% and ri will remain the same. III. Both rm and ri will decrease by 1%. IV. Both rm and ri will remain the same. V. Both rm and ri will increase by 1%. -Select- v 2. Now suppose rrc decreases to 5%. The slope of the SML remains constant. How would this affect rm and ri? I. Both rm and ri will increase by 1%. II. Both rm and ri will remain the same. III. Both rm and ri will decrease by 1%. IV. rm will decrease by 1% and ri will remain the same. V. rm will remain the same and ri will decrease by 1%. -Select- c. 1. Now assume that rrr remains at 6%, but rm increases to 10%. The slope of the SML does not remain constant. How would these changes affect ri? Round your answer to two decimal places. The new ri will be %. 2. Now assume that rRF remains at 6%, but Im falls to 8%. The slope of the SML does not remain constant. How would these changes affect ri? Round your answer to two decimal places. The new ri will be %