Suppose RF = 4%, r = 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 Prf increases to 5%. The slope of the SML remains constant. How would this affect rm and ni? I. I will remain the same and will increase by 1%. II. rm will increase by 1% and i will remain the same. III. Both rm and will decrease by 1%. IV. Both rm and n will remain the same. V. Both rm and i will increase by 1%. -Select- 2. Now suppose TRF decreases to 3%. The slope of the SML remains constant. How would this affect rm and n? I. rm will remain the same and r; will decrease by 1%. II. Both rm and n will increase by 1%. III. Both rm and r will remain the same. IV. Both rm and will decrease by 1%. V. rm will decrease by 1% and r; will remain the same. -Select- C. 1. Now assume that rrp remains at 4%, but I'm 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 %. 2. Now assume that ref remains at 4%, but I'm falls to 8%. The slope of the SML does not remain constant. How would these changes affect n? Round your answer to two decimal places. The new ri will be %