Suppose PRF = 5%, = 9%, and b = 1.5. a. What is n, the required rate of return on Stock I? Round your answer to two decimal places. % b. 1. Now supposerer Increases to 6%. The slope of the SML remains constant. How would this affect and n? 1. Both rand n will remain the same. II. Bothm and will increase by 1%. III. r will remain the same and will increase by 1%. IV. will increase by 1% and i will remain the same. V. Both rm and n will decrease by 1%. D 2. Now suppose nu decreases to 4%. The slope of the SML remains constant. How would this affect and n? I. Both rm and n will remain the same. II. Both rm and n will decrease by 1%. III. will decrease by 1% and n will remain the same. IV. I will remain the same and will decrease by 1%. V. Both rand n will increase by 1%. Select c. 1. Now assume that no remains at 5%, but ru 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 96. 2. Now assume that ru remains at 5%, but rufalls 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 M