Suppose rri = 7%, rm = 9%, and bi = 1.3. a. What is ri, the required rate of return on Stock i? Round your answer to two decimal places. % b. 1. Now suppose rrf increases to 8%. The slope of the SML remains constant. How would this affect rm and ri? I. rm will remain the same and ri will increase by 1%. II. rm will increase by 1% and ri will remain the same. III. Both rm and ri will decrease by 1%. IV. Both rm and ri will remain the same. V. Both rm and ri will increase by 1%. -Select- 2. Now suppose rre decreases to 6%. The slope of the SML remains constant. How would this affect rm and r;? I. rm will decrease by 1% and r will remain the same. II. rm will remain the same and ri will decrease by 1%. III. Both rm and ri will increase by 1%. IV. Both rm and ri will remain the same. V. Both rm and ri will decrease by 1%. -Select- c. 1. Now assume that rre remains at 7%, but rm increases to 10%. The slope of the SML does not remain constant. How would these changes affect ri? Round your answer to two decimal places. The new ri will be %. 2. Now assume that rre remains at 7%, but rm falls to 8%. The slope of the SML does not remain constant. How would these changes affect ri? Round your answer to two decimal places. The new ri will be %