Suppose rrr = 4%, r = 10%, and b = 1.3. a. What is ri, the required rate of return on Stock i? Round your answer to one decimal place. % b. 1. Now suppose rre increases to 5%. The slope of the SML remains constant. How would this affect r and ? I. Both rm and n will increase by 1 percentage point. II. rm will remain the same and will increase by 1 percentage point. III. rm will increase by 1 percentage point and i will remain the same. IV. Both rand n will decrease by 1 percentage point. V. Both rm and n will remain the same. -Select- 2. Now suppose rrr decreases to 3%. The slope of the SML remains constant. How would this affect rm and n? I. Both r and will decrease by 1 percentage point. II. I will decrease by 1 percentage point and n will remain the same. III. rm will remain the same and will decrease by 1 percentage point. IV. Both rm and n will increase by 1 percentage point. V. Both rm and r will remain the same. -Select- c. 1. Now assume that are remains at 4%, but r 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 n will be 2. Now assume that rrr remains at 4%, but I 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 ri will be %