Suppose rri = 6%, IM = 10%, and b = 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 tre increases to 7%. The slope of the SML remains constant. How would this affect rm and ri? I. I'm will remain the same and r will increase by 1 percentage point. II. rm will increase by 1 percentage point and n will remain the same. III. Both rm and will decrease by 1 percentage point. IV. Both rm and I will remain the same. V. Both rm and n will increase by 1 percentage point. -Select- 2. Now suppose tre decreases to 5%. The slope of the SML remains constant. How would this affect im and r? I. Both rm and n will decrease by 1 percentage point. II. IM will decrease by 1 percentage point and ri will remain the same. III. PM will remain the same and will decrease by 1 percentage point. IV. Both rm and n will increase by 1 percentage point. V. Both I'm and ri will remain the same. -Select- c. 1. Now assume that ref remains at 6%, but rm increases to 11%. The slope of the SML does not remain constant. How would these changes affect ni? Round your answer to one decimal place. The new n will be %. 2. Now assume that rrp remains at 6%, 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 n will be %