Suppose RRF=6%,RM2=9%, and bi=1.5. What is , the required rate of return on Stock 1? Round your answer to one decimal piace. % 1. Now suppose rRF increases to 7%. The slope of the SML remains constant. How would this affect rM and ni? 1. Both rm and n will remain the same. 11. Both m and n will increase by 1 percentage point. IIT. rM will remain the same and n will increase by 1 percentage point. IV. rM will increase by 1 percentage point and n will remain the same. V. Both rM and n will decrease by 1 percentage point. 2. Now suppose rRf decreases to 5%. The slope of the SML remains constant. How would this affect rM and n? 1. Both rm and n will remain the same. II. Both rM and n will decrease by 1 percentage point. III. m will decrease by 1 percentage point and r i will remain the same. IV. r will remain the same and r will decrease by 1 percentage point. V. Both r and n, will increase by 1 percentage point. c. 1. Now assume that rRF remains at 6%, but rM increases 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 % 2. Now assume that rRf remains at 6%, but rM falls to 8%. 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 %