Suppose TRF = 5%, rM = 9%, and bi = 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 TRF increases to 6%. The slope of the SML remains constant. How would this affect rM and r? I. Both rm and r will increase by 1 percentage point. II. rM will remain the same and ri will increase by 1 percentage point. III. rM will increase by 1 percentage point and ri will remain the same. IV. Both rM and ri will decrease by 1 percentage point. V. Both rm and r will remain the same. -Select- 2. Now suppose rRF decreases to 4%. The slope of the SML remains constant. How would this affect rm and ri? I. Both rm and r will increase 1 percentage point. II. Both rM and r 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 ri will decrease by 1 percentage point. -Select- c. 1. Now assume that rRF remains at 5%, but rM increases to 10%. The slope of the SML does not remain constant. How would these changes affect ri? Round your answer to one decimal place. The new r will be %. 2. Now assume that rRF remains at 5%, but rM falls to 8%. The slope of the SML does not remain constant. How would these changes affect ri? Round your answer to one decimal place. The new r will be %