Suppose r_RF = 4%, r_M = 10%, and b_i = 2.1 a. What is eta, the required rate of return on Stock i? % b. Now suppose r_RF increases to 5%. The slope of the SML remains constant. How would this affect r_M and eta? I. Both r_M and eta will increase by 1%. II. r_M will remain the same and eta will increase by 1%. III. r_M will increase by 1% and eta will remain the same IV. Both r_M and eta will decrease by 1%. V. Both r_M and eta will remain the same. c. Now suppose r_RF decreases to 3%. The slope of the SML remains constant. How would this affect r_M and eta? I. Both r_M and eta will increase by 1%. II. Both r_M and eta will remain the same. III. Both r_M and eta will decrease by 1%. IV. r_M will decrease by 1% and eta will remain the same. V. r_M will remain the same and eta will decrease by 1%. d. Now assume that r_RF remains at 4% but r_M increases to 11%. The slope of the SML does not remain constant. How would these changes affect eta? The new eta will be % e. Now assume that r_RF remains at 4% but r_M falls to 9%. The slope of the SML does not remain constant. How would these changes affect eta? The new eta will be %