Suppose TRF = 3%, M = 9%, and b = 1.9. 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 4%. The slope of the SML remains constant. How would this affect rand n? I. Both rm and n will decrease by 1 percentage point. II. Both rm and will remain the same. III. Both ' and n will increase by 1 percentage point. IV. I will remain the same and n will increase by 1 percentage point. V. I'm will increase by 1 percentage point and n will remain the same. -Select- 2. Now suppose rre decreases to 2%. The slope of the SML remains constant. How would this affect rm and r? I. Both rm and i will increase by 1 percentage point. II. Both i'm and i will remain the same. III. Both rm and will decrease by 1 percentage point. IV. I will decrease by 1 percentage point and i will remain the same. V. I will remain the same and n will decrease by 1 percentage point. -Select- c. 1. Now assume that ree remains at 3%, but r 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 ri will be % 2. Now assume that ree remains at 3%, but rm falls to 8%. The slope of the SML does not remain constant. How would these changes affect r? Round your answer to one decimal place. The new n will be %