uppose rRF=6%,MM=11%, and bi=1.7. What is ri, the required rate of return on Stock i? Round your answer to one decimal place. % 1. Now suppose rRF increases to 7%. The slope of the SML remains constant. How would this affect mM and r ? I. Both rM and ri will decrease by 1 percentage point. II. Both rM and ri will remain the same. III. Both rM and ri will increase by 1 percentage point. IV. rM will remain the same and r will increase by 1 percentage point. V. rM will increase by 1 percentage point and ri will remain the same. 2. Now suppose rRF decreases to 5%. The slope of the SML remains constant. How would this affect rM and r? I. Both rm and ri will increase by 1 percentage point. II. Both rM and ri will remain the same. III. Both rM and ri will decrease by 1 percentage point. IV. rM will decrease by 1 percentage point and n will remain the same. V. rM will remain the same and r will decrease by 1 percentage point. The new ri will be %. The new ri will be %