Check My Work (3 remaining O Click hare to read the eBook: The Relationship Between Risk and Rates of Returm BETA AND REQUIRED RATE OF RETURN A stock has a required return of 13%; the risk-free rate is 6.5%; and the market risk premium is 5%. hdf the market rek premiurn increased to 8%, what would happen to the stock's required rate of retum? Assume that the risk-free rate and the beta reman unchanged. I. If the stock's beta is equal to 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 beta is greater than 1.0, then the change in required rate of return will be greater than the change in the market risk premium. 111. If 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 nsk premun. IV. 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. 10. | V.If the stock's beta is equal to 1.0, then the change in required rate of return will be greater than the change in the market risk premium 13. New stock's required rate of return will be | %. Round your answer to two decimal places. 14, Check My Work (s remaining) 2 5