Please answer both

Question 7 (1 point) According to the CAPM, if the risk-free rate is constant and the market risk premium (Rm-Rrf increases by 1 percentage point O a. Then the required return on all stocks will rise by 1 percentage point. O b. Then the required return will increase by 1percentage point for a stock that has a beta of 1.0. c. Then the required return witl increase for stocks that have a beta greater than 1.0, but it will decrease for stocks that have a beta less than 1.0 d. Then the required return may increase or decrease depending on what happens to the beta of each stock Question 8 a point) Over the past 75 years, we have observed that investments with the highest average annual retuns also tend to have the highest standard deviations of their annual returns. This observation supports the notion that there is a positive uestion 8 (1 point) Over the past 75 years, we have observed that investments with the highest average annuat returns also tend to have the highest standard deviations of their annual returns. This observation supports the notion that there is a positive correlation between risk and return. Which of the following lists correctly ranks investments from HIGHEST to LOWEST returns and risk? a. Small-company stocks, large-company stocks, long-term corporate bonds, US Treasury bills. O b. Small-company stocks, long-term corporate bonds, large-company stocks, US Treasury bills. c. Large company stocks, small-company stocks, long-term corporate bonds, US Treasury bills. . Large company stocks. small-company stocks, long-term corporate bonds, us y stocks, small-company stocks, long-term corporate bonds, US. Treasury bills. Question 9 point)