Part 2 - Problem-solving (Show your work) 15. As an equity analyst you are concerned with what will happen to the required return for Universal Toddler's stock as market conditions change. Suppose , IRF = 2%, rm = 13% and but = 0.9. a. Under current conditions, what is rut, the required rate of return on UT stock? b. Now suppose IRF i. Increases to 3% or ii. Decreases to 1%. The market risk premium, RPM (i.e., the slope of the SML) remains constant. How would this affect rm and rut? c. Now assume rrr remains at 2% but rm i. Increases to 15% or il. Falls to 11%. The market risk premium, RPM, (i.e., the slope of the SML) does not remain constant. How would these changes affect rut