Assume that the risk-free rate remains constant, but the market risk premium declines. Which of the following is most likely to occur?

A. The required return on a stock with beta = 1.0 will not change.
B. The required return on a stock with beta > 1.0 will increase.
C. The return on "the market" will remain constant.
D. The return on "the market" will increase.
E. The required return on a stock with a positive beta < 1.0 will decline.


Answer: E

Business

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Regulatory agencies are considered information users with an indirect financial interest

Indicate whether the statement is true or false

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Which of the following agencies regulates marketing activities the most?

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