Stock X has a beta of 0.5 and Stock Y has a beta of 1.5. Which of the following statements is most correct?

a. If you invest $50,000 in Stock X and $50,000 in Stock Y, your portfolio will have a beta equal to 1.0.

b. If investors' aversion to risk decreases (assume the risk-free rate unchanged), Stock X will have a larger decline in its required return than will stock Y. c

. Stock Y's return has a higher standard deviation than Stock X.

d. If expected inflation increases (but the market risk premium is unchanged), the required returns on the two stocks will decrease by the same amount.

e. If the beta of a company doubles, then the required rate of return will also double.