Suppose rRF=3%,mM=11%, and bi=1.4. a. What is , the required rate of return on Stock i? Round your answer to one decimal place. % b. 1. Now suppose rRf increases to 4%. The slope of the SML remains constant. How would this affect r and r ? I. rM will increase by 1 percentage point and r will remain the same. II. Both rm and n will decrease by 1 percentage point. III. Both rM and n will remain the same. IV. Both rm and r, will increase by 1 percentage point. V. IM will remain the same and n will increase by 1 percentage point. 2. Now suppose rRF decreases to 2%. The slope of the SML remains constant. How would this affect rm and n ? I. rM will remain the same and n will decrease by 1 percentage point. II. Both m and will increase by 1 percentage point. III. Both rm and r will remain the same. IV. Both rm and r will decrease by 1 percentage point. V. rM will decrease by 1 percentage point and ri will remain the same. 1. Now assume that rRF remains at 3%, but rm increases to 12%. The slope of the SML does not remain constant. How would these changes affect n ? Round your answer to one decimal place. The new r will be %. 2. Now assume that rRF remains at 3%, but rM falls to 10%. The slope of the SML does not remain constant. How would these changes affect n ? Round your answer to one decimal place. The new ri will be %