You are required to comment: (a) What would happen to the required return if the standard deviation for the security were higher?

In the CAPM formula, Beta (β) is calculated as (Correlation Coefficient × Standard Deviation of Security) / Standard Deviation of Market. If the standard deviation for the security (σj) were higher, holding other factors constant, the Beta (βj) of the security would increase. Since the required return (Rj) is directly proportional to Beta (Rj = Rf + βj × (Rm - Rf)), a higher Beta would lead to a higher required return for the security.