Suppose IRF = 4%, IM = 9%, and b = 1.3. a. What is ri, the required rate of return on Stock i? Round your answer to two decimal places. % b. 1. Now suppose tre increases to 5%. The slope of the SML remains constant. How would this affect rm and r? I. Both rm and will decrease by 1%. II. Both rm and will remain the same. III. Both rm and will increase by 1%. IV. I'm will remain the same and r; will increase by 1%. V. rm will increase by 1% and ri will remain the same. -Select- 2. Now suppose rre decreases to 3%. The slope of the SML remains constant. How would this affect rm and n? I. Both rm and r will increase by 1%. II. Both rm and i will remain the same. III. Both rm and r will decrease by 1%. IV. I'm will decrease by 1% and ri will remain the same. V. Im will remain the same and ri will decrease by 1%. -Select- c. 1. Now assume that rri remains at 4%, but r increases to 10%. The slope of the SML does not remain constant. How would these changes affect n? Round your answer to two decimal places. The new r will be %. 2. Now assume that rre remains at 4%, but I'm falls to 8%. The slope of the SML does not remain constant. How would these changes affect n? Round your answer to two decimal places. The new r will be %