16. Stock U has a beta of 1.5, and stock V has a beta of 0.8. A portfolio consists of $3million invested in stock U and $2million invested in stock V. The risk-free rate is 2% and the market risk premium is 6%. Which of the following answers is correct: A) Stock U must have the higher standard deviation of its returns than stock V. B) Based on the CAPM, the required rate of return on stock V must be higher than the required rate of return on stock U. C) The beta of the portfolio is less than 1.5 D) The portfolio's standard deviation will be higher than the standard deviation of stock U and also higher than the standard deviation of stock V. E) None of the above answers is correct