Question 11 (1 point)

Which of the following statements is correct?

Question 11 options:

	Other things held constant, if investors suddenly became convinced that there would be deflation in the economy, then the required returns on all stocks should increase.
	If a companys beta doubles, then its required rate of return will also double.
	If the risk-free rate rises by 0.5% but the market risk premium declines by that same amount, then the required rates of return on an average stock will remain unchanged, but required returns on stocks with betas less than 1.0 will rise.
	If a companys beta were cut in half, then its required rate of return would also be halved.