6 % , rM- 12 % , and b, 1.3. Suppose rRF a. What is ri, the required rate of return on Stock i? Round your answer to one decimal place. % b. 1. Now suppose rRF increases to 7%. The slope of the SML remains constant. How would this affect ru and r? 1. ru will remain the same and r, will increase by 1 percentage point. II. will increase by 1 percentage point and r, will remain the same. III. Both ry and r, will decrease by 1 percentage point. IV. Both ry and ri will remain the same. V. Both ru and r, will increase by 1 percentage point. -Select- 2. Now suppose rRE decreases to 5 %. The slope of the SML remains constant. How would this affect ru and n? I. r will remain the same and n will decrease by 1 percentage point. II. Both ry andr will increase by 1 percentage point. III. Both ru and ri will remain the same. IV. Both ru and r, will decrease by 1 percentage point. V. T will decrease by 1 percentage point and ri will remain the same. -Select- c. 1. Now assume that rae remains at 6% , but ru increases to 13%. The slope of the SML does not remain constant. How would these changes affect r? Round your answer to one decimal place. 9 The new ri will be 2. Now assume that rRF remains at 6 %, but ru falls to 119%. The slope of the SML does not remain constant. How would these changes affect r? Round your answer to one decimal place. The rew r, will be