The risk-free rate is 6%; Stock A has a beta of 1.0; Stock B hasa beta of 2.0; a

The risk-free rate is 6%; Stock A has a beta of 1.0; Stock B hasa beta of 2.0; and the market risk premium rM rRF is positive.Which of the following statements is CORRECT?If the risk-free rate increases but the market risk premium staysunchanged Stock Bs required return will increase by more thanStock As.Stock Bs required rate of return is twice that of Stock A.If Stock As required return is 11% then the market risk premiumis 5%.If Stock Bs required return is 11% then the market risk premiumis 5%.If the risk-free rate remains constant but the market risk premiumincreases Stock As required return will increase by more thanStock Bs.