According to the capital asset pricing model:

Multiple Choice

A stock with a beta of 1 will see its expected rate of return increase by 20% if its beta rises to 1.2, all else constant.

An increase in the risk-free rate without a corresponding increase in the market rate of return indicates that the risk premium for a stock with a beta of.8 will increase.

There is an inverse relationship between risk and return.

A stock which earns a higher rate of return than the market should have a beta which is greater than 1.0.

A stock with a beta of 2.0 will see its return decline by 2% should the risk-free rate decline from 3% to 2%, all else constant.