Currently the risk free rate and market premium
Course:- Financial Management
Reference No.:- EM13942931

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Currently the risk free rate is 1% and the market premium is 3%. Given this information, which of the following statements is correct?

A) An index fund with beta = 1.0 should have a required return of 4%

B) An index fund with beta = 1.0 should have a required return less than 4%

C) An index fund with beta = 1.0 should have a required return greater than 4%

D) If stock doubles, it's required return must also double

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