iv. Which of the following statements is most correct? (Assume that the risk-free rate remains constant.) If the market risk he market risk premium increases by 1 percentage point, then the required return on all stocks will rise by 1 percentage point. b. If the market risk premium increases by i percentage point, then the redg return will increase for stocks that have a beta greater than 1.0, but it will decrease for stocks that have a beta less than 1.0. c. If the market risk premium increases by 1 percentage point, then the required return will increase by 1 percentage point for a stock that has a beta equal to 1.0. Statements a and c are correct. None of the statements above is correct. d. e. In the years ahead the market risk premium, (kM - KRF), is expected to fall, while the risk-free rate, kRF, is expected to remain at current levels. Given this forecast, which of the following statements is most correct? v. The required return for all stocks will fall by the same amount. B. The required return will fall for all stocks but will fall more for stocks with higher betas. c. The required return will fall for all stocks but will fall less for stocks with iher betas d. The required return will increase for stocks with a beta less than 1.0 and will decrease for stocks with a beta greater than 1.0. The required return on all stocks will remain unchanged. e