tock has a required return of 10%, the risk-free rate is 2.5%, and the market risk premium is 4%. a. What is the stock's beta? Round your answer to two decimal places. b. If the market risk premium increased to 7\%, what would happen to the stock's required fate of return? Assume that the risk-free rate and the beta remain unchanged. 0 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 premium. 11. If the stock's beto is equal to 1.0 , then the change in required rate of return will be greater than the change in the market risk premium. iii. If the stock's beta is equal to 1.0 , then the change in required rate of return wilf be less that the change in the market risk premium. IV. If the stock's beta is greater than.1.0, then the change in requied rate of return wit be oreater than the change in the market risk oremium. V. It 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 fisk premium. Stock's required rate of retum win be 6. Problem B.07 (Portfollo Required Return) Suppose you are the money manager of a $4.64 milion investment fund. The fund consists of four stocks with the foliowing investments and betas: If the market's required rate of retum is 10% and the risk-free rate is 5%, what is the funds required rate of return? Do not round intermediate calculations. Raund your answer to two decimal places