Suppose les = 4%, n = 11%, and b = 1.1. a. What is the required rate of retum on Stock i? Round your answer to one decimal place. b. 1. Now suppose res increases to 5%. The slope of the SML remains constant. How would this affect and n? I. T will increase by 1 percentage point and will remain the same. II. Both and will decrease by 1 percentage point III. Both rand will remain the same. IV. Both ry and will increase by 1 percentage point. V. Tu will remain the same and I will increase by 1 percentage point. -Select- 2. Now suppose la decreases to 3%. The slope of the SML remains constant. How would this affect ry and n? 1. Both ry and r, will remain the same. II. Both rw and r. will decrease by 1 percentage point. III. will decrease by 1 percentage point and I will remain the same. IV. De will remain the same and will decrease by 1 percentage point. V. Both rwand n will increase by 1 percentage point. -Select- C. 1. Now assume that res remains at 4%, but ry increases to 12%. The slope of the SML does not remain constant. How would these changes affect 17 Round your answer to one decimal place. The new n will be 2. Now assume that ref remains at 4%, but ru falls to 10%. The slope of the SML does not remain constant. How would these changes affect ni? Round your answer to one decimal place. The new n will be