Suppose rRF = 6%, M = 11%, and bj = 1.5. a. What is ri, 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 r? I. Both rm and ri will remain the same. II. Both rm and i will increase by 1 percentage point. III. rm will remain the same and I will increase by 1 percentage point. IV. rm will increase by 1 percentage point and ri will remain the same. V. Both rm and i will decrease by 1 percentage point. -Select- 2. Now suppose rrf 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 ri will remain the same. III. rm will remain the same and will decrease by 1 percentage point. IV. Both rm and ri will increase by 1 percentage point. V. Both rm and ri will remain the same. -Select- c. 1. Now assume that of remains at 6%, but rm increases to 12%. The slope of the SML does not remain constant. How would these changes affect ri? Round your answer to one decimal place. The new ri will be %. 2. Now assume that rRF remains at 6%, but rm falls to 10%. The slope of the SML does not remain constant. How would these changes affect n? Round your answer to one decimal place. The new ri will be %