3. Problem 8.12 (Required Rate of Return) eBook Problem Walk-Through Suppose - 3%, -11%, and by - 1.3. a. What is the required rate of return on Stock I? Round your answer to one decimal place. b. 1. Now suppose nu increases to 4%. The slope of the SML remains constant, How would this affect and n? 1. T will remain the same and will increase by 1 percentage point. II. T will increase by 1 percentage point and I will remain the same. III. Both and will decrease by 1 percentage point IV. Both and will remain the same. V. Both and will increase by 1 percentage point. - Select 2. Now suppose to decreases to 2%. The slope of the SML remains constant. How would this affect and n? I. he will decrease by 1 percentage point and will remain the same. 11. Will remain the same and will decrease by 1 percentage point. III. Both and will increase by 1 percentage point. IV. Both and will remain the same. V. Both and will decrease by 1 percentage point. Select 6.1. Now assume that w remains at 3%, but 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 n will be 2. Now assume that remains at 3%, but I falls 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 n will be 9