Which of the following statements is CORRECT? (Assume that the risk-free rate is a constant.)

If the market risk premium increases by 1%, then the required return will decrease by 1% for a stock that has a beta of 1.0.

If the market risk premium increases by 1%, then the required return will increase by less than 1% for a stock that has a beta of 0.8.

If the market risk premium increases by 1%, then the required return will increase by less than 1% for a stock that has a beta of 1.2.

If the market risk premium increases by 1%, then the required return will increase by less than 2% for a stock that has a beta of 2.0.