Suppose rRF = 4%, r = 13%, and b = 1.8. a. What is ri, the required rate of return on Stock i? Round your answer to one decimal place. % b. 1. Now suppose rrf increases to 5%. The slope of the SML remains constant. How would this affect rm and ri? I. I will remain the same and i will increase by 1 percentage point. II. will increase by 1 percentage point and ri will remain the same. III. Both rm and ri will decrease by 1 percentage point. IV. Both rm and ri will remain the same. V. Both rm and ri will increase by 1 percentage point. -Select- 2. Now suppose TRF decreases to 3%. The slope of the SML remains constant. How would this affect rm and ri? I. Both rm and ri will remain the same. II. Both rm and I will decrease by 1 percentage point. III. IM will decrease by 1 percentage point and ri will remain the same. IV. I will remain the same and i will decrease by 1 percentage point. V. Both rm and ri will increase by 1 percentage point. -Select- c. 1. Now assume that rRF remains at 4%, but rm increases to 14%. The slope of the SML does not remain constant. How would these changes affect ri? Round your answer to one decimal place. The new ri will be %. 2. Now assume that ref remains at 4%, but Im falls to 12%. The slope of the SML does not remain constant. How would these changes affect ri? Round your answer to one decimal place. The new ri will be %. Screenshot Check My Work