Suppose RF = 3%, M = 10%, and b = 2.2. 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 4%. The slope of the SML remains constant. How would this affect rm and n? I. Both rm and r will increase by 1%. II. rm will remain the same and r will increase by 1%. III. rm will increase by 1% and r will remain the same. IV. Both rm and n will decrease by 1%. V. Both rm and i will remain the same. -Select- 2. Now suppose rri decreases to 2%. The slope of the SML remains constant. How would this affect rm and n? I. Both rm and n will increase by 1%. II. Both rm and i will remain the same. III. Both rm and ri will decrease by 1%. IV. rm will decrease by 1% and r will remain the same. V. I will remain the same and i will decrease by 1%. -Select- C. 1. Now assume that rrf remains at 3%, but rm increases to 11%. The slope of the SML does not remain constant. How would these changes affect n? Round your answer to two decimal places. The new ni will be %. 2. Now assume that ref remains at 3%, but im falls to 9%. The slope of the SML does not remain constant. How would these changes affect ni? Round your answer to two decimal places. The new r will be %