Suppose - 8% M - 12%, and b - 1.2. a. What is the required rate of return on Stock 17 Round your answer to two decimal places, b. 1. Now suppose the increases to 9%. The slope of the SML remains constant. How would this affect th and 12 1. Both and will increase by 1% IL Will remain the same and will increase by 1% III. T will increase by 19 and will remain the same. IV. Both and will decrease by 1% V. Both and, will remain the same. 2. Now suppose a decreases to 7%. The slope of the SML remains constant. How would this affect and ? 1. Both and will remain the same. II Both and will decrease by 1 ILL. I will decrease by 1% and will remain the same TV will remain the same and will decrease by 19. V. Both and will increase by 1%. Sect c. Now assume that is remains at 89but increases to 13%. The slope of the SML does not remain constant. How would these changes affect 17 Round your answer to two decimal places The new I will be 96 2. Now assume that rap remains at, but falls to 119. The dope of the SML does not remain constant. How would these changes affect> Round your answer to two decimal places The new. will be