Suppose ref = 8%, r = 13%, and b = 2.2. a. What is ri, the required rate of return on Stock I? Round your answer to two decimal places. % b. 1. Now suppose rrf increases to 9%. The slope of the SML remains constant. How would this affect rm and n? I. rm will increase by 1% and will remain the same. 11. Both rm and will decrease by 1%. 111. Both rm and n will remain the same. IV. Both rm and n will increase by 1%. V. r will remain the same and n will increase by 1%. Select 2. Now suppose her decreases to 7%. The slope of the SML remains constant. How would this affect and n? 1. Both rand n will remain the same. II. Both rm and n will decrease by 1%. III. r will decrease by 1% and n will remain the same. IV. r will remain the same and will decrease by 1%. V. Both rand n will increase by 1%. V. Both rm and n will increase by 19. Select c. 1. Now assume that rrr remains at 8%, but r increases to 149. 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 %. 2. Now assume that rar remains at 8%, but im falls to 12%. 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