XC 15:54 Question 12 5 pts For a stock with a risk-free rate, Frf, of 4.0 percent and a market risk premium. (rm-PRP) of 6.0 percent, which of the following statements is most correct about a stock which has a beta = 1.2? Each of the statements regarding the stock's return are correct. If the market risk premium increases by 3 percent the stock's expected return will increase by more than 3 percent. If the stock's beta doubles its expected return will increase but not double If expected inflation increases 3 percent, the stock's expected return will increase by 3 percent. 5 pts Question 13 You are considering two bonds. Bond A has a 9% annual coupon while Bond B has a 5% annual coupon. Both bonds have a 7% yield to maturity, and the YTM is expected to remain constant. Which of the following statements is CORRECT? fato remain constant, the prices of both bonds will remain unchanged next year