Beta and Required Rate of Return

The stock of Orange Inc. has a required rate of return of 14.5%, the required return on the market is 11%, and the risk-free rate is 4%. What is the market risk premium? What is the stock's beta? If the required return on the market increased to 12%, what would happen to the stock's required rate of return? Assume that the risk-free rate and the beta remain unchanged.

A) Market risk premium = 7.5%, Beta = 1.25, Stock's required rate of return would decrease.
B) Market risk premium = 3.5%, Beta = 1.75, Stock's required rate of return would increase.
C) Market risk premium = 7.5%, Beta = 1.25, Stock's required rate of return would increase.
D) Market risk premium = 3.5%, Beta = 1.75, Stock's required rate of return would decrease.