A stock has a requied retum of 8%, the risk-free rate is 36 , and the market risk premim is 3%. a. What is the atocks beta? Rorind your answer te two decimal places. b. If the market risk premium increased to 8 . What would happen to the stock's required rate of return? Assume that the riakifree rate and the beta remain unchanoed. Do not round intermedhite ciloutations. Round your answer to two decimal places. 1. If the stock's beta is iess than 1.0 , then the change in required rate of return will be greater than the change in the market nisk premin. II. If the stock's beta is greater than 1.0 , then the chaige in required rate of retum will be less than the change in the makke fisk premium. 111. If the stock's beta is equal to 1.0 , then the change in requred rate of retum wil be greater than the change in the marker risk premium. IV. If the itock's beta is equal to 1.0 , then the change in requared rate of retum wil be less than the change in the market nak premeim. V. If the itock's beta is greater than 1.0 , then the change in required rate of retum will be greater than the change in the market isk. premeim. New stock's required rate of return will be