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Suppose ng=4%,na=12%, and bi=1.9. a. What is in the required rate of retum on Stock i? Round your answer to one decimal place: b. 1.

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Suppose ng=4%,na=12%, and bi=1.9. a. What is in the required rate of retum on Stock i? Round your answer to one decimal place: b. 1. Now suppose nu increases to 5\%. The slope of the SML remains constant. How would this affect ne and n ? 1. Eoth nN and n will decrease by 1 percentage point. 11. Both for and n will remain the same. 11t. Both nt and n will increase by 1 percentage point. IV. for will remain the same and n will increase by 1 percentoge point. v. na will increase by 1 percentage point and n will remain the same. 2. Now suppose nu decreases to 3h. The slope of the SML remsins constant. How would this affect nat and n? t. Both ne and n will decrease by 1 percentage point. II. n will decrease by 1 percentage point and n will remain the same: III. for will remain the same and 5 wir decrease by 1 percentage point. IV. Both ne and n will increase by t percentoge point. V. Both ne and n will remain the same. Heinte 0 c. 1. Now assume thot nu remains at 1%, bue nie increases to 13%. The slope of the 5ML 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 fer remains at 4%, but ne falls to 11%. The slope of the sML does not ramain constant. How would these changes affect n> Round your answer to one decimal place. The new n will be

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