Which of the following statements is CORRECT?a. If a company's beta is halved, then its required return will also be halved.b. B

Question

3 years ago

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Which of the following statements is CORRECT?a. If a company's beta is halved, then its required return will also be halved.b. B

eta is measured by the slope of the security market line.c. The slope of the security market line is equal to the market risk premium, (rM - rRF).d. If a company's beta doubles, then its required return will also double.e. If the risk-free rate rises, then the market risk premium must also rise

Business

1 answer:

olganol [36] · Answer 1 · 2022-01-09T09:41:56+03:00

olganol [36]3 years ago

7 0

Answer:

C. The slope of the security market line is equal to the market risk premium, (rM - rRF).