Stock a has a beta of 0.8 and stock b has a beta of 1.2. 50% of portfolio p is invested in stock a and 50% is invested in stock b. if the market risk premium (rm - rrf) were to increase but the risk-free rate (rrf) remained constant, which of the following would occur? a. the required return would decrease by the same amount for both stock a and stock b. b. the required return on portfolio p would remain unchanged. c. the required return would increase for stock a but decrease for stock b. d. the required return would increase for stock b but decrease for stock a. e. the required return would increase for both stocks but the increase would be greater for stock b than for stock a.

Oerstman, inc. uses a standard costing system and develops its overhead rates from the current annual budget.the budget is based on an expected annual output of 120,000 units requiring 480,000 direct labor hours.(practical capacity is 500,000 hours)annual budgeted overhead costs total $772,800, of which $556,800 is fixed overhead.a total of 119,300 units, using 478,000 direct labor hours, were produced during the year.actual variable overhead costs for the year were $260,400 and actual fixed overhead costs were $555,450.required: 1. compute the fixed overhead spending variance and indicate if favorable or unfavorable.2. compute the fixed overhead volume variance and indicate if favorable or unfavorable.