12. Assume that the risk-free rate is 6% and the market risk premium is 5%. Given this information, which of the following statements is CORRECT? a. An index fund with beta-1.0 should have a required return of 11% b. An index fund with a beta of 1.5 should have a required return of 10.5%. c. An index fund with beta 1.15 should have a required return less than 11%. d. An index fund with a beta of 0.5 should have required return of 11% e. There is not enough information to decide. 3. Jane Doe has $100,000 invested in a 2-stock portfolio. $60,000 is invested in Stock X, which has a Beta of 1.40. The remainder is invested in Stock Y, which has a beta of 0.80. What is the portfolio's beta? (Do not round you intermediate calculations.) a. BPortfolio 1.10 b. BPortfolio 1.14 C. BPortfolio 1.25 d. BPortfolio 1.29 e. There is not enough information to calculate. 14. Inflation, a disturbance in a far-off land that disrupts the transport of oil, and a sudden rise in interest rates are examples of a. systematic risk factors that we can diversify away. b. company-specific risk factors that we can diversify away. c. Market-risk factors that a well diversified portfolio can eliminate or diversify away. among the factors that affect market risk, which we cannot diversify away. All of the above are true. d. e