Suppose IRF = 6%, I'M = 10%, and b = 1.7. a. What is ri, the required rate of return on Stock i? Round your answer to one decimal place. % b. 1. Now suppose rrf increases to 7%. The slope of the SML remains constant. How would this affect rm and r? I. Both rm and r will increase by 1 percentage point. II. will remain the same and r will increase by 1 percentage point. III. PM will increase by 1 percentage point and r; will remain the same. IV. Both rm and r; will decrease by 1 percentage point. V. Both rm and i will remain the same. -Select- 2. Now suppose of decreases to 5%. The slope of the SML remains constant. How would this affect rm and ? I. Both rm and will remain the same. II. Both rm and will decrease by 1 percentage point. III. I will decrease by 1 percentage point and will remain the same. IV. rm will remain the same and will decrease by 1 percentage point. V. Both r' and will increase by 1 percentage point. -Select- c. 1. Now assume that ref remains at 6%, but r increases to 11%. The slope of the SML does not remain constant. How would these changes affect ? Round your answer to one decimal place. The new r will be % 2. Now assume that ref remains at 6%, but rm falls to 9%. The slope of the SML does not remain constant. How would these changes affect n? Round your answer to one decimal place. The new r will be %