Suppose TRF-3%, TM - 10%, and b-1.2. a. What is n, the required rate of return on Stock 17 Round your answer to one decimal place. % b. 1. Now suppose to increases to 4%. The slope of the SML remains constant. How would this affect ru and ? 1. M will increase by 1 percentage point and r, will remain the same. II. Both ra and will decrease by 1 percentage point. III. Bothnu and n will remain the same. IV. Bothru and n will increase by 1 percentage point. V. T will remain the same and will increase by 1 percentage point. 2. Now suppose nus decreases to 2%. The slope of the SML remains constant. How would this affect ru and n? 1. Both rx and n will increase by 1 percentage point. 11. Both rand n will remain the same. III. Bothru and n will decrease by 1 percentage point IV. nu will decrease by 1 percentage point and n will remain the same. V. will remain the same and will decrease by 1 percentage point C. 1. Now assume that remains at 3%, but increases to 1156. The slope of the SML does not remain constant. How would these changes affect Round your answer to one decimal place. The new n will be D 2. Now assume that ru remains at 3%, but falls to 99. 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