Question: Suppose rRF = 4%, rM = 13%, and bi = 1.1. What is ri, the required rate of return on Stock i? Round your answer

Suppose rRF = 4%, rM = 13%, and bi = 1.1. What is ri, the required rate of return on Stock i? Round your answer to one decimal place. % 1. Now suppose rRF increases to 5%. The slope of the SML remains constant. How would this affect rM and ri? Both rM and ri will increase by 1 percentage point. rM will remain the same and ri will increase by 1 percentage point. rM will increase by 1 percentage point and ri will remain the same. Both rM and ri will decrease by 1 percentage point. Both rM and ri will remain the same. -Select- 2. Now suppose rRF decreases to 3%. The

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