Suppose I'RF - 4%, r = 9%, and b; = 1.5. a. What is ri, the required rate of return on Stock i? Round your answer to one decimal place. % b. 1. Now suppose rre increases to 5%. The slope of the SML remains constant. How would this affect rm and r? I. rm will remain the same and will increase by 1 percentage point. II. rm will increase by 1 percentage point and i will remain the same. III. Both rm and r will decrease by 1 percentage point. IV. Both rm and will remain the same. V. Both rm and i will increase by 1 percentage point. -Select- 2. Now suppose rre decreases to 3%. The slope of the SML remains constant. How would this affect rm and r? I. rm will remain the same and r; will decrease by 1 percentage point. II. Both rm and rwill increase by 1 percentage point. III. Both rm and will remain the same. IV. Both rm and i will decrease by 1 percentage point. V. rm will decrease by 1 percentage point and r; will remain the same. -Select- c. 1. Now assume that ree remains at 4%, but rm increases to 10%. The slope of the SML does not remain constant. How would these changes affect ri? Round your answer to one decimal place. The new r will be %. 2. Now assume that roe remains at 4%, but rm falls to 8%. The slope of the SML does not remain constant. How would these changes affect r? Round your answer to one decimal place. The new n will be %