Question 8 (1 point)

Currently, the risk-free rate is 6% and the market risk premium is 5%. Given this information, which of the following statements is correct?

Question 8 options:

	An index fund with beta = 1.0 should have a required return of 11%.
	An index fund with beta = 1.0 should have a required return greater than 11%.
	If a stocks beta doubles, its required return must also double.
	An index fund with beta = 1.0 should have a required return less than 11%.