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Question 12 (0.8 points) 25. Next year, the market risk premium is expected to fall, while the risk-free rate is expected to remain the same.

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Question 12 (0.8 points) 25. Next year, the market risk premium is expected to fall, while the risk-free rate is expected to remain the same. Given this forecast, which of the following statements is CORRECT? A) The expected return for all stocks will fall by the same amount. B) The expected return on all stocks will remain unchanged. C) The expected return will increase for stocks with a beta less than 1.0 and will decrease for stocks with a beta greater than 1.0. D) The expected return will fall for all stocks, but it will fall less for stocks with higher betas. E) The expected return will fall for all stocks, but it will fall more for stocks with higher betas. Question 13 (0.8 points) Saved

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