While examining the current economic outlook, we observe that the risk-free rate is 2% and the market risk premium is 4%. Given this information, which of the following statements is CORRECT?
A-If a stock's beta doubles, its required return must also double.
B-An index fund with beta = 1.0 should have a required return less than 6%.
C-An index fund with beta = 1.0 should have a required return greater than 6%.
D-An index fund with beta = 1.0 should have a required return of 6%.