a. Under current conditions, what is nut, the required rate of return on UT Stock? Round your answer to one decimal place. 4 b. 1. Now suppose raf increases to 7%. The slope of the SML remains constant. How would this affect rM and ru?? I. Both rm and ru will remain the same. II. Both rM and nu will increase by 1 percentage point. III. will remain the same and rut will increase by 1 percentage point. IV. rm will increase by 1 percentage point and rut will remain the same. V. Both rm and rut will decrease by 1 percentage point. 2. Now suppose rit decreases to 5%. The slope of the 5ML remains constant. How would this affect rm and nut? I. Both rm and nut will decrease by 1 percentage point. II. rM will decrease by 1 percentage point and ruT will remain the same. III. rm will remain the same and rut will decrease by 1 percentage point. IV. Both rm and ru will increase by 1 percentage point. V. Both rM and rut will remain the same. 1. Now assume rRF remains at 6% but rM increases to 16%. The slope of the SML does not remain constant. How would these changes affect rut? I. rUT will increase by 2.8 percentage point. II. rUT will remain the same. III. rut will decrease by 2.8 percentage point. 2. Now assume ref remains at 6% but rM falls to 13%. The slope of the SML does not remain constant. How would these changes affect rut? I. rUT will decrease by 1.4 percentage point. II. rUT will remain the same. III. rUt will increase by 1.4 percentage point