Assume that the risk-free rate remains constant, but the market risk premium declines. Which of the following is most likely to occur?

The required return on a stock with beta = 1.0 will not change.

The required return on a stock with beta > 1.0 will increase.

The return on "the market" will remain constant.

The return on "the market" will increase.

The required return on a stock with beta < 1.0 will decline.