Assume that the risk-free rate is 5%. Which of the following statements is CORRECT?
a. If a stock's beta doubled, its required return under the CAPM would also double.
b. If a stock's beta doubled, its required return under the CAPM would more than double.
c. If a stock's beta were 1.0, its required return under the CAPM would be 5%.
d. If a stock's beta were less than 1.0, its required return under the CAPM would be less than 5%.
e. If a stock has a negative beta, its required return under the CAPM would be less than 5%.
e
You might also like to view...
______ erases feelings of indifference by implying care and regard for others.
A. Forgiveness B. Sympathy C. Empathy D. Equality
The ending balance in the Work in Process Inventory account is supported by individual Overhead account balances
Indicate whether the statement is true or false
Carla redeemed EE bonds which qualify for the educational exclusion. The redemption consisted of $14,000 principal and $6,000 interest. The net qualifying educational expenses are $10,000. Her AGI is below the threshold for phase-out of the exclusion. The taxable interest is
A. $0. B. $3,000. C. $2,400. D. $6,000.
Most systems use a queue discipline known as
A) shortest processing time. B) longest processing time. C) FIFO. D) earliest due date. E) critical ratio.