6. Problem 8.12 (Required Rate of Return) eBook Problem Walk-Through Suppose ru - 5%, 12%, and b = 1.5. a. What is the required rate of return on Stock I? Round your answer to one decimal place. % 6. 1. Now suppose to increases to 6%. The slope of the SML remains constant. How would this affectuand ? 1. nu will remain the same and will increase by 1 percentage point. II. T will increase by 1 percentage point and n will remain the same. III. Both and will decrease by 1 percentage point IV. Both and will remain the same V. Both and n will increase by 1 percentage point. 2. Now suppose to decreases to 4%. The slope of the SML remains constant. How would this affect and ? 1. Both and will increase by 1 percentage point. II. Both and will remain the same 111. Both and will decrease by 1 percentage point IV. T will decrease by 1 percentage point and will remain the same V. nu will remain the same and will decrease by 1 percentage point. Select c. 1. Now assume that w remains at 5%, but he increases to 13%. 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 for remains at 5%, but ru falls to 11%. The slope of the SML does not remain constant. How would these changes affect 7 Round your answer to one decimal place The new will be