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% n eBook Problem Walk-Through Suppose nu - 4%, 14 - 12%, and b = 1.6. a. What is, the required rate of retum on Stock I? Round your answer to one dedmal place. 6.1. Now suppose rar increases to 5%. The slope of the SML remains constant. How would this affect and n? 1. Both and will increase by 1 percentage point. 11. will remain the same and will increase by 1 percentage point. III. will increase by 1 percentage point and n will remain the same IV. Both and will decrease by 1 percentage point. V. Both and I will remain the same. -Select- 2. Now suppose le decreases to 3%. The slope of the SML remains constant. How would this affect and 17 I. De Wil decrease by 1 percentage point and will remain the same. 11. m will remain the same and will decrease by 1 percentage point. III. Both and will increase by 1 percentage point IV. Both and will remain the same V. Both and will decrease by 1 percentage point. 6.1. Now assume that we remains at 4%, but increases to 13%. The slope of the SM. does not remain constant. How would these changes affect n7 Round your answer to one decimal place The new will be 2. Now assume that w remains at 4%, but he fails to 11%. The stope of the SML does not remain constant. How would these changes affect Round your answer to one decimal place The new will be

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