stock has a required retum of 16%, the risk free rate is 7.5%, and the market risk preminum is 4% : a. What is the stock's betal Round your answer to two decimal places. b. If the market risk premium increased to 6%, What would happen to the stock's required rate of return? Assume that the tiskefree rate and the beta temlin unctitineit Do not round intermediate calculations. Round yoar answer to two decimal plsces. 1. If the stock's beta is greater than 1.0, then the change in required rate of return will be greater than the change in the market risk prentim. 1I. If the stock's beta is less than 1,0 , then the change in required rate of return will be greatec than the change in the market nsk premium. III. If the stock's beta is greater than 1.0, then the change in recuired rate of return will be less than the change in the market rak premium. IV. If the stock's beta is equal to 1.0, then the change in required rate of return will be greater than the change in the inarket rick premium. V. If the stock's beta is equal to 1.0, then the change in required rate of return will be less than the change in the nuarkat risk premium Stock's required rate of return will be