Suppose rri = 4%, r'M = 10%, and b = 1.7. 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 5%. 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 ri will increase by 1 percentage point. III. rm will remain the same and ri will increase by 1 percentage point. IV. IM will increase by 1 percentage point and ri will remain the same. V. Both rm and ri will decrease by 1 percentage point. -Select- 2. Now suppose rre decreases to 3%. The slope of the SML remains constant. How would this affect rm and n? I. Both rm and ri will increase by 1 percentage point. II. Both rm and ri will remain the same. III. Both rm and ri will decrease by 1 percentage point. IV. rM will decrease by 1 percentage point and ri will remain the same. V. rm will remain the same and r will decrease by 1 percentage point. -Select- c. 1. Now assume that rre remains at 4%, but rm increases to 11%. 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 rri remains at 4%, but rm falls to 9%. The slope of the SML does not remain constant. How would these changes affect n? Round your answer to one decimal place. The new r will be %