uppose nue =5%, he =10%, and br=1.4. a. What is n. the required rate of return on Stock i? Round your answer to one decimal place. \% b. 1. Now suppose nu:increases to 6%. The slope of the 5ML. remains constant. How would this affect he and n? I. ni will remain the tame and n will increase by 1 percentage point II. n will increase by 1 percentage point and n will remain the same. III. Both re and n will decrease by i percentage point. TV. Both n and n will remain the same V. Both fu and n will increase by 1 percentage point. 2. Now suppose ner decreses to 4%. The slope of the 5ML, remains constant. How would this affect ri and n ? 1. ns will remain the same and on will decrease by 1 percentage point. 1. Both ne and n will increase by 1 percentage point. 13. Both n and n will remain the same. N. Bath me and fi will decrease by 1 percentage point. V. fi will decrease ty 1 percentage point and n will remain the same. c. 1. Now assume that rus remains at 5%, but ru increases to 11%. The slope of the SML. does nok remain contant. How would these changes affect n? Round your snswer to one decimal place. The newn will be . 2. Now assume that res temains at S\%, but ne falls to 9w. The slope of the sML does not remain constant. How would these changes affect n? Round your answer to one decimal place. The new n will be W