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Stock A has a beta of 1.2 and a standard deviation of returns of 14%. Stock B has a beta of 10. 1.8 and a
Stock A has a beta of 1.2 and a standard deviation of returns of 14%. Stock B has a beta of 10. 1.8 and a standard deviation of returns of 18%. If the risk-free rate of return increases and the market risk premium remains constant, then: the required returns on stocks A and B will not change the required returns on stocks A and B will both increase by the same amount the required return on stock A will increase more than the required return on stock B the required return on stock B will increase more than the required return on stock A
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