(2) decithai placte : A stock has a required return of 9%, the risk-free rate is 3.5%, and the market risk premhim is . 2\%. a. What is the stock's beta? Round your answer to two decimal places. b. If the market risk. premlum increased to 5%, what would happen to the stock's required rate of return? Assume that the riskifree rate and the beta remain enchanged, decimal places. 1. If the stock's beta is equal to 1.0, then the change in required rate of return will be less than the change in the market risk premaium. II. If the stock's beta is greater than 1.0, then the change in reguired rate of retirn will be greater than the change in the grarket risk premlum. III. If the stock's beta is less than 1.0, then the change in required rate of retum will be oreater than the change in the madket risk premsium. IV. If the stock's beta is greater than 1.0, then the change in required rate of retum will be less than the change in the market risk premlium, V. If the stock's beta is equal to 1.0, then the change in required rate of return will be greater than the change in the markot risk premium, Stocks required rate of return will be