If the risk$-$free return were $4\mathrm{.}0\%$ and a security$\text{'}$s beta coefficient were $2\mathrm{.}0,$ what would be the required rate of return for the security?

a$.4\%$

b$.5\%$

c$.10\%$

d$.14\%$

$-$Select$-$

If the risk$-$free return $($inflation$)$ increases by $2$ percentage points, the required rate of return

a$.$ stays the same for all securities

b$.$ increases the same $2$ percentage points for all securities

c$.$ increases for some securities and decreases for others depending on the beta coefficient

d$.$ cannot be determined without more information

If the risk$-$free return $($inflation$)$ increases by $2$ percentage points, then for the security market line

a$.$ both the $y-$intercept and the slope remain the same

b$.$ the $y-$intercept changes and the slope remains the same

c$.$ the $y-$intercept remains the same and the slope changes

d$.$ both the $y-$intercept and the slope change