Suppose - 7%, I = 9%, and b - 1.5. a. What is the required rate of return on Stock i? Round your answer to two decimal places. % b. 1. Now suppose ru increases to 8%. The slope of the SML remains constant. How would this affect im and ? 1. Both rand.rs will increase by 1% II. T will remain the same and will increase by 1%. III. T will increase by 1% and n will remain the same. IV. Both and will decrease by 1% V. Both and will remain the same Select 2. Now suppose decreases to 6%. The slope of the SML remains constant. How would this affect and 1. Both tand n will remain the same 11. Both ne and will decrease by 1% III na will decrease by 1% and will remain the same IV. I will remain the same and will decrease by 19 Both and will increase by 1%. Balet c. 1. Now assame that far remains at 7, but increases to 10%. The slope of the SML does not remain constant. How would these changes affect Round your answer to two decimal places The new n will be 2. Now assume that remains at 79, but falls to 8%. The slope of the SML does not remain constant. How would these changes affect ? Round your answer to two decimal places The town will be