Suppose rrF = 5%, IM = 9%, and bj = 1.3. 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 6%. The slope of the SML remains constant. How would this affect rm and n? I. rm will remain the same and i will increase by 1 percentage point. II. PM will increase by 1 percentage point and n 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 i will increase by 1 percentage point. -Select- 2. Now suppose rof decreases to 4%. The slope of the SML remains constant. How would this affect rm and n? I. Both rm and i will increase by 1 percentage point. II. Both rm and i will remain the same. III. Both rm and I will decrease by 1 percentage point. IV. IM will decrease by 1 percentage point and ri will remain the same. V. rm will remain the same and will decrease by 1 percentage point. -Select- c. 1. Now assume that rre remains at 5%, but rm increases to 10%. The slope of the SML does not remain constant. How would these changes affect ri? Round your answer to one decimal place. The new n will be %. 2. Now assume that rre remains at 5%, but im falls to 8%. The slope of the SML does not remain constant. How would these changes affect ri? Round your answer to one decimal place. The new r will be %