U eBook Suppose Ter 4%, T 13%, and b, 1.2. a. What is n, the required rate of return on Stock i? Round your answer to one decimal place. %6 b. 1. Now suppose rar increases to 5%. The slope of the SML remains constant. How would this affect ry and r? I. I will increase by 1 percentage point and r, will remain the same. 11. Both ry and r, will decrease by 1 percentage point. 111. Both ry and r, will remain the same. 11 Problem Walk-Through IV. Both n and r, will increase by 1 percentage point. V. r will remain the same and r, will increase by 1 percentage point. -Select-v 2. Now suppose tar decreases to 3%. The slope of the SML remains constant. How would this affect ry and r? 1. Both ry and r, will increase by 1 percentage point. 11. Both ry and r, will remain the same. 111. Both ry and r, will decrease by 1 percentage point. IV. De will decrease by 1 percentage point and r, will remain the same. V. TM will remain the same and r, will decrease by 1 percentage point. Select v c. 1. Now assume that rar remains at 4%, but ne increases to 14%. The slope of the SML does not remain constant. How would these changes affect r? Round your answer to one decimal place. The new r. will be %. 2. Now assume that rur remains at 4%, but ni falls to 12%. The slope of the SML does not remain constant. How would these changes affect r? Round your answer to one decimal place. The new r will be 96. Show