Supposer - 5%, = 13%, and b = 1.6. a. What is n, the required rate of return on Stock i? Round your answer to one decimal place. 9 b. 1. Now suppose ru increases to 6%. The slope of the SML remains constant. How would this affect and ? 1. Both and n will increase by 1 percentage point. II. T will remain the same and n will increase by 1 percentage point. III. T will increase by 1 percentage point and n will remain the same. IV. Both and will decrease by 1 percentage point V. Both and will remain the same. -Select- 2. Now supposer decreases to 4%. The slope of the SML remains constant. How would this affect and n? 1. I will remain the same and will decrease by 1 percentage point II. Both and will increase by 1 percentage point. III. Both and will remain the same. IV. Both and will decrease by 1 percentage point. V. Will decrease by 1 percentage point and n will remain the same c. 1. Now assume that rus remains at 5%, but increases to 14%. The slope of the SML does not remain constant. How would these changes affect n? Round your answer to one decimal place The new In will be 2. Now assume that remains at 5%, but fails to 12%. The slope of the SML does not remain constant. How would these changes affect n? Round your answer to one decimal place. The new will be