Currently,the Risk-Free Rate Is 6% and the Market Risk Premium

Multiple Choice

Currently,the risk-free rate is 6% and the market risk premium is 5%.Given this information,which of the following statements is correct?

A) An index fund with beta = 1.0 should have a required return of 11%.
B) An index fund with beta = 1.0 should have a required return less than 11%.
C) If a stock's beta doubles, its required return must also double.
D) An index fund with beta = 1.0 should have a required return greater than 11%.