time sensitive

Supgose nn=5%,hn=9%, and bh=1.9 a. What is n, the fequired rate of retum on Stock i? Round your answer to one decimal place. b. 1. Now suppose rei increases to 6%. The slope of the SML remains constant. How would this affoct ine and ri? 1. fy will remain the same and n will increase by 1 percentage point. II. no will increase by 1 percentage point and in will remain the same. III. Both ni and n will decrease by 1 percentage point. IV. Both ne and r, will remain the same. V. Both find and will increase by 1 percentage point. 2. Now suppose nir decreases to 4%. The slope of the SML remains constant. How would this affect ne and n? 1. Both m and n will increase by 1 percentage point. 11. Both re and n will remain the same. III. Both ne and n will decrease by 1 percentage point. F. n. will decrease by 1 percentage point and n will remain the same. V. ne will remain the same and n will decrease by 1 percentage peint. C. 1. Now assume that ne remains at 5%, but re increases to 10%. The slope of the SML does not remain constant, How. would these changes alfect n? Round youe answer to one decimal place. The new n wil be 2. Now assume that nor remains at 5%, but im 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