stock has a required teturn of 7%, the risk-free rate is 4.5%, and the market risk premium is 2%. a. What is the stock's beta? Round your answer to two decimal places. b. If the market risk premium increased to 3%, what would happen to the stock's required rate of return? Assume that the risk.free rate and the beta remain unchanged. not round intermediate calculations. Round your answer to two decimal places. 1. If the stoek's beta is greater than 1.0, then the change in required rate of retum will be greater than the change in the market risk premium. 11. If the stock's beta is less than 1.0, then the change in required rate of return will be greater than the change in the market risk premium. IIt. If the stock's beta is grester than 1.0, then the change in required rate of retum will be less than the change in the matket risk premium. IV. If the stock's beta is equal to 1.0, then the change in reguired rate of return will be greater than the change in the market risk premium. V. If the stock's beta is equal to 1.0, then the change in required rate of return wili be less than the change in the market risk premium. 5tock's required rate of return wiil be