The risk-free rate is 6% and the market risk premium is 5%. Your $1 million portfolio consists of $300,000 invested in a stock that has a bata of 1.2 and $700,000 invested in a stock that has a beta of 0.8. Which of the following statements is CORRECT? The portfolio's required retum is more than 11% of the market risk premium remains unchanged but expected inflation increases by 2%, your portfolio's required return will increase by The required return on the market w 10% If the risk free rate remains unchanged but the market risk premium increases by 29. your portfolio's required return will increase by more than 2% If the stock market is efficient, your portfolio's expected retum should equal the expected return on the market, which is 11%