Suppose rrr = 4%, r = 13%, and b - 1.5. 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 5%. The slope of the SML remains constant. How would this affect rand r? I. Both rm and will decrease by 1 percentage point. II. Both ry and r will remain the same. III. Both ry and will increase by 1 percentage point. IV. I will remain the same and will increase by 1 percentage point. V. I'm will increase by 1 percentage point and r; will remain the same. -Select- 2. Now suppose IRF decreases to 3%. The slope of the SML remains constant. How would this affect in and r? I. rm will remain the same and will decrease by 1 percentage point. II. Both rm and will increase by 1 percentage point. III. Both ry and will remain the same. IV. Both r and rwill decrease by 1 percentage point. V. I will decrease by 1 percentage point and r; will remain the same. -Select- c. 1. Now assume that for remains at 4%, but r increases to 14%. 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 ras remains at 4%, but I'm falls to 12%. The slope of the SML does not remain constant. How would these changes affect ? Round your answer to one decimal place. The new r will be