Suppose na = 79, 99, and b = 1.9. a. What is n, the required rate of return on Stock I? Round your answer to two decimal places. 96 b. 1. Now suppose rrf increases to 8%. The slope of the SML remains constant. How would this affect and n? I. rm will remain the same and n will increase by 1%. II. will increase by 1% and n will remain the same. III. Both rand n will decrease by 1%. IV. Both rand r, will remain the same. V. Both rm and n will increase by 1%. Select 2. Now suppose Pre decreases to 6%. The slope of the SML remains constant. How would this affect rand n? 1. Both rm and n will increase by 1%. 11. Both rand n will remain the same. III. Both rand n will decrease by 1%. IV. I will decrease by 1% and I will remain the same. V. I will remain the same and will decrease by 1%. 2. Now suppose ner decreases to 6%. The slope of the SML remains constant. How would this affect rm and n? 1. Both rand n will increase by 1%. II. Both rand n will remain the same. III. Both rand n will decrease by 1%. IV. rm will decrease by 1% and will remain the same V. rm will remain the same and will decrease by 1%. -Select v c. 1. Now assume that my remains at 7%, but 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 n will be 9. 2. Now assume that he remains at 7%, but my falls to 8%. The slope of the SML does not remain constant. How would these changes affect ? Round your answer to two decimal places. The new n will be 96