3. Problem 8.12 (Required Rate of Return) eBook Problem Walk-Through Suppose ns = 6%, 4 = 9%, and b = 1.3. a. What is n, the required rate of return on Stock i? Round your answer to one decimal place. 9 b. 1. Now suppose nur increases to 7%. The slope of the SML remains constant. How would this affect and n? I. rm will increase by 1 percentage point and i will remain the same. 11. Both and will decrease by 1 percentage point III. Both ne and will remain the same. IV. Both and will increase by 1 percentage point V will remain the same and n will increase by 1 percentage point Select 2. Now suppose no decreases to 5%. The slope of the SML remains constant. How would this affect i and n? 1. Both rand n will remain the same 11. Both and will decrease by 1 percentage point. IIIWill decrease by 1 percentage point and n will remain the same IV. t will remain the same and will decrease by 1 percentage point V. Both and n will increase by 1 percentage point c. Now assume that for remains at 6%, but increases 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 will be 2. Now assume that our remains at 6%, but folls to 8%. The slope of the SML does not remain constant. How would these changes affect ? Round your answer to one decimal place % The new n will be