Hace A stock has a fequired retum of 10%, the rick-free rate is 6.5%, and the market risk premium is 2%. a. What is the stock's beta?. Round yout aniswer to two decimal places. b. If the market risk nremium increased to 3W, what would happen to the styck's required rate of return? Assume that the risk free rate and the beta reinain unchanged, Do not round intermediate calculations. Plound your anwwer to two 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 makket risk preminth. If. 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 preniam. III. If the stock's beta is less than 1.0, then the change in required rate of return will be greoter than the change in the market risk premium. IV. If the stock's beta is greater than 1.0, then the change in required rate of retum will be less than thet change in the makket risk premium. V. If the stock's beta is equal to 1.0, then the change in requered rate of retian will be greater than the change in the market rikk premium. Stock's teauired rate of return will be