Assume for this question that the Security Market Line (SML) model is accurate. Stock A has a beta = 0.8, while Stock B has a beta = 1.6. Which of the following statements is most correct?

A. Stock B's required return is double that of Stock A's.
B. An equally weighted portfolio of Stock A and Stock B will have a beta less than 1.2.
C. If market participants become more risk averse, the required return on Stock B will increase more than the required return on Stock A.
D. All of the answers above are correct.
E. Answers a and c are correct.