Question: Now suppose rRF increases to 5 % . The slope of the SML remains constant. How would this affect rM and rUT? I. rM will

Now suppose rRF increases to 5%. The slope of the SML remains constant. How would this affect rM and rUT?
I. rM will increase by 1 percentage point and rUT will remain the same.
II. Both rM and rUT will decrease by 1 percentage point.
III. Both rM and rUT will remain the same.
IV. Both rM and rUT will increase by 1 percentage point.
V. rM will remain the same and rUT will increase by 1 percentage point.

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