A stock has a required return of 12%, the risk-free rate is 5.5%, and the market risk premium is 4%. a. What is the stock's beta? Round your answer to two decimal places. b. If the market risk premium increased to 5%, what would happen to the stock's required rate of return? Assume that the rjsk-free rate and the beta remain unchanged. Do not round intermediate calculations. Round your answer to two decimal places. I. 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 market risk premium. II. 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 premium. III. If the stock's beta is greater than 1.0 , then the change in required rate of return will be greater than the change in the market risk premium. IV. If the stock's beta is less than 1.0 , then the change in required rate of return will be greater than the change in the market risk premium. V. If the stock's beta is greater than 1.0 , then the change in required rate of return will be less than the change in the market risk premium. Stock's required rate of return will be %