uppose n=5%,nA=30%, and b=1.1. A. What is n., the required rate of retum on Steck is Hound your anumer to one decimal place. % b. 1. Now suppose n, incresses to 6%. The slope of the syic remains constant. Hew would this affect fis and n ? 1. Beth nand n will remain the same. 14, Both mand n will increase by 1 percentage point: III. fa will remain the same and n will increase by 1 percer tage poink. IV. Ty will increase by 1 percentage point and n will remain the sume. v. Both w and A will decrease by 1 percentage point. 2. hiow suppose fer decreases to 4h. The slope of the SML remains constant, How would this affect in and r ? 1. th will remain the saine and n, well decrease by 1 percentage point: II. both mand n will increase by 1 percentage point. III. Both na and n will remain the same. TV. thoth in and 8 will dectease by 1 percentoge point. V. nit will decrease by 1 percentepe point and f will remain the same. C. 1. Now assume that rar remeins at 5%, but re increases to 11%. The slope of the 5ML does not reinain coestant. Hoe would these changes affect in? indund your answer to one decimal place The new n will be decimai place. The naw ri will be \%