Suppose l'RF = 6%, I'M = 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 rre increases to 7%. The slope of the SML remains constant. How would this affect rm and r? I. Both rm and will remain the same. II. Both rm and will increase by 1%. III. rm will remain the same and r; will increase by 1%. IV. rm will increase by 1% and r; will remain the same. V. Both rm and will decrease by 1%. -Select- 2. Now suppose TRF decreases to 5%. The slope of the SML remains constant. How would this affect rm and ri? I. rm will remain the same and will decrease by 1%. II. Both rm and i will increase by 1%. III. Both rm and i will remain the same. IV. Both rm and r; will decrease by 1%. V. rm will decrease by 1% and r; will remain the same. -Select- Now assume that ree remains at 6%, but increa to 10%. The slope SML not remain How would ese changes affect Round your answer two places. The new r will be %. 2. Now assume that ree remains at 6%, but rm falls to 8%. The slope of the SML does not remain constant. How would these changes affect ri? Round your answer to two decimal places. The new n will be %