Required Rate of Return As an equity analyst you are concerned with what will happen to the required return to Universal Toddler stock as market conditions change. Suppose no 4%, -11%, and but - 1.1. a. Under current conditions, what is rut, the required rate of return on UT Stock? Round your answer to two decimal places. b. 1. Now suppose tre increases to 5%. The slope of the SML remains constant. How would this affect and Fur? I. Both rm and nut will remain the same. II. Bothm and run will increase by 1%. III. I will remain the same and run will increase by 1%. IV. rm will increase by 1% and run will remain the same. V. Both and run will decrease by 1%. ITE 2. Now suppose TRF decreases to 3%. The slope of the SML remains constant. How would this affect im and TUT? I. Both rand nut will decrease by 1%. II. TM will decrease by 1% and run will remain the same. III. I will remain the same and run will decrease by 1%. IV. Both rand nut will increase by 1%. V. Both rand run will remain the same. -Select- 1. Now assumere remains at 4% but increases to 13%. The slope of the SML does not remain constant. How would these changes affect Put? 1. Tut will decrease by 2.2%. II. TUT will remain the same. III. TUT Will increase by 2.2%. -Select- 2. Now assume up remains at 4% but I falls to 10%. The slope of the SML does not remain constant. How would these changes affect TUT? 1. TUT will remain the same. II. TUT will decrease by 1.1%. 111. Put will increase by 1.1%. -Select