In recent years, both expected inflation and the market risk premium have declined. Assume that all stocks have positive betas. Which of the following is likely to have occurred as a result of these changes? Select one: a. The average required return on the market has remained constant, but the required returns have fallen for stocks that have betas greater than 1.0. b. The required returns on all stocks have fallen by the same amount. O c. The required returns on all stocks have fallen, but the decline has been greater for stocks with lower betas. d. The required returns on all stocks have fallen, but the decline has been greater for stocks with higher betas. e. The required returns have increased for stocks with betas greater than 10 but have declined for stocks with betas less than 1.0. You have developed the following data on three stocks: Stock Standard Deviation Beta 0.25 0.61 B 0.15 0.79 0.20 1.29 If you are a risk minimizer, you should - Choose Stock if it is to be held in isolation Choose Stock if it is to be held as part of a well-diversified portfolio Select one: a. CA d b. CB C. A: A d. B; A e. A B