Stock A has a beta of $0\mathrm{.}7,$ whereas Stock B has a beta of $1\mathrm{.}3.$ Portfolio P has $50\%$ invested in both A and B$.$ Which of the following would occur if the market risk premium increased by $1\%$ but the risk$-$free rate remained constant?

Group of answer choices

The required return on both stocks would increase by $1\%.$

The required return on Portfolio P would decrease by $1\%.$

The required return on Stock A would increase by less than $1\%,$ while the return on Stock B would increase by more than $1\%.$

The required return for Stock A would fall, but the required return for Stock B would increase.

The required return on Portfolio P would remain unchanged.