Suppose a. What is eBook Problem Walk-through - 3% -13%, and b - 1.6 the required rate of return on Stock 17 Round your answer to one decimal place and b. 1. Now suppose Increases to 4%. The slope of the SML remains constant. How would this affect 1. Both and will decrease by 1 percentage point II. Both rand will remain the same III. Both and will increase by 1 percentage point. IV. Tu will remain the same and will increase by 1 percentage point. V. He will increase by 1 percentage point and will remain the same and 2. Now suppose TRF decreases to 2%. The slope of the SML remains constant. How would this affect L. Tu will remain the same and will decrease by 1 percentage point 11. Both and will increase by 1 percentage point. Ill. Both and will remain the same IV. Both and will decrease by 1 percentage point V will decrease by 1 percentage point and it will remain the same. remains at 3%, but increases to 14. The slope of the SML does not remain constant. How would these changes affect Round your answer to one decimal place c. 1. Now assume that The new will be 2. Now that The new i will be all to 124. The slope of the SME does not remain constant. How we remains at 39, but %. rect Round your answer to decimal place