What is the reared rate of return on Stock Round your answer to one decimal place Now suppose nesses to the slope of the SML romans constant. How would this affect and ? It will styt percentage point and will remain the same 11. Both and will decrease by percentage in II Both and will remain them TV Both and will increet percentage point We will remain the same and increase by 1 percentage point 2. Now we recomes the slope of the SML mais constat How would the affect and ! 1 Both and remain the same I Both and will decrety 1 percentage will ease byl percentage poi and want me I wilman the same in wil deres liv percentage Vund will increase weten me that in 101 The Strument when Round your one decimal lace There Then he Assignment 8: Chapter 8 Problems 8 eBook Problem Walk-Through Supposerer = 6%, 9%, and b = 1.3. a. What is n, the required rate of return on Stockt? Round your answer to one decimal place 96 b. 1. Now suppose the increases to 7%. The slope of the SML remains constant. How would this affect and 17 1. will increase by 1 percentage point and will remain the same 11. Both and will decrease by 1 percentage point. III. Both rand n will remain the same IV. Both and willing ease by 1 percentage point V will remain the same and will increase by 1 percentage point Select 2. Now suppose rar decreases to 5%. The slope of the SML remains constant. How would this affect and ? 1. Both rand n will remain the same II Both and will decrease by 1 percentage point 111. will decrease by 1 percentage point and will remain the same IV will remain the same and will decrease by 1 percentage point, V. Both and will increase by 1 percentage point 1. Now assume that you remains at 6%, but not increases to 10%. The slope of the SML does not remain constant, How would these changes affect na Round your answer to one decimal place, The new r will be 2. Now assume that twy romains at 6%, but my falls to 8%. The slope of the SML does not remain constant. How would these changes affect Round your arvwer to one decimal place The new I will be