Stock A has a beta coefficient $($$)$ equal to $2\mathrm{.}1,$ and Stock B has a beta coefficient $($$)$ equal to $0\mathrm{.}7.$ According to the capital asset pricing model $($CAPM$),$ which of the following statements is correct?

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The required rate of return for Stock A$,$ rA$,$ should be $2\mathrm{.}1$ times the required rate of return for Stock B$,$ rB$.$

$$

The risk premium associated with Stock A$,$ RPA, should be $2\mathrm{.}1$ times the risk premium associated with Stock B$,$ RPB$.$

Incorrect. The CAPM is a model used to determine the required return on an asset, which is based on the proposition that an asset's return should be equal to the risk$-$free return plus a risk premium that reflects the asset's systematic $($relevant$)$ risk. See $8-4$: The Relationship between Risk and Rates of Return: The CAPM

$$

The required rate of return for Stock A$,$ rA$,$ should be three times the required rate of return for Stock B$,$ rB$.$

$$

The risk premium associated with Stock A$,$ RPA, should be three times the risk premium associated with Stock B$,$ RPB$.$

$$

The required rate of return for Stock A$,$ rA$,$ should be three times the risk premium associated with Stock A$,$ RPA.