stock has a required return of 12%, the risk-free rate is 3.5%5, and the market fisk premidim is 3\%. a. What is the stock's beta? Round your answer to two decimal plates. b. If the market risk premium increased to 4%, what would happen to the stock's required rate of return? Assume that the risk.free rate and the beta centan unchanged. De not round intermediate calculations. Round your answer to two decimal places. 1. If the stock's beta is greater than 1.0, then the change in required rate of return will be less than the change in the market risk premilati. 11. 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 market isk premium. III. If the stock's beta is equal to 1.0, then the change in required rate of return will be lets than the change in the market risk premium. W. If the stock's beta is greater than 1.0, then the change in required rate of return wal be greater than the change in the market risk premilam. V. If the stock's teta is less than 1.0, then the change in required rate of return will be greater than the change in the market risk prentium. Stock's requirgd rate of return will be