Suppose rRF = 7%, IM = 12%, 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 for increases to 8%. The slope of the SML remains constant. How would this affect rm and ri? I. rm will remain the same and i will increase by 1%. II. Im will increase by 1% and i will remain the same. III. Both rm and r; will decrease by 1%. IV. Both rm and i will remain the same. V. Both rm and r, will increase by 1%. -Select- 2. Now suppose for decreases to 6%. The slope of the SML remains constant. How would this affect rm and ri? I. Both rm and r; will remain the same. II. Both rm and r; will decrease by 1%. III. IM will decrease by 1% and ri will remain the same. IV. I'm will remain the same and r; will decrease by 1%. V. Both rm and i will increase by 1%. -Select- C. 1. Now assume that ref remains at 7%, but rm increases to 13%. 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 for remains at 7%, but im falls to 11%. The slope of the SML does not remain constant. How would these changes affect ri? Round your answer to two decimal places. The new r will be %