uppose ry=3%,ru=11%, and b=1.2. Cl b. 1. Now suppose rep increases to 4%. The slope of the SML remains constant. How would this affect fu and n? 1. ny will remain the same and n will increase by 1 percentage point. II. ry will increase by 1 percentage point and n will remain the same. III. Both fe and n will decrease by 1 percentage point. W. Both rmandn will remain the same. V. Both m and n will increase by 1 percentage point. 2. Now suppose no decreases to 2%. The slope of the SML remains constant, How would this affect ro and in? t. Both mu and n will decrease by 1 percentage point. II. fu will decrease by 1 percentage point and n will remain the same. IIt. ry will remain the same and n will decrease by 1 percentage point. N. Both fy and f will increase by 1 percentage point. V. Both n and n will remain the same. c. 1. Now assume that fur remains at 3%, but no increases to 12%. The slope of the sML does not remain constant. How would these changes affect n? Round your answer to one decimal place. The new in will be \%. 2. Now assume that for remains at 3%, but fie fals to 10%. The slope of the sML does not remain constant. How would these changes affect n? Round your answer to one decimal place. The new in will be \%