Which of the following statements is CORRECT?
A. If the risk-free rate rises, then the market risk premium must also rise.
B. If a company's beta is halved, then its required return will also be halved.
C. If a company's beta doubles, then its required return will also double.
D. The slope of the security market line is equal to the market risk premium, (rM? rRF).
E. Beta is measured by the slope of the security market line.
Answer: D
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A good way for most U.S. companies to learn about consumer behavior in other regions of the world is to
A. visit the country and get to know its people. B. use local marketing research companies in other countries. C. generalize from U.S. marketing research. D. conduct global marketing research in the United States. E. take advantage of the wealth of secondary data that are available.
Explain the concept of the high/low strategy. Why is this an attractive strategy to marketers?
What will be an ideal response?
Fixed operating costs can change over time.
Answer the following statement true (T) or false (F)
The stock valuation model D1/(rcs - g) requires the stock to grow at a rate greater than the required
return; otherwise, the stock is worthless. Indicate whether the statement is true or false