Stock A has a beta of 1.2 and a standard deviation of returns of 14%. Stock B has a beta of 1.8 and a standard deviation of returns of 18%. If the risk free rate of return increases and the market risk premium remains constant, then _________
a. The required rate of return on Stock B will increase more than the required rate of return on stock A.
b. The required returns on stocks A and B will both increase by the same amount.
c. The required returns on stocks A and B will remain the same
d. The required return on stock A will increase more than the required return on Stock B.