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Author Question: Stock A has a beta of 0.4, whereas Stock B has a beta of 1.6. Portfolio P has 50% invested in both A ... (Read 79 times)

lrhoads

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on: Aug 7, 2023
Stock A has a beta of 0.4, whereas Stock B has a beta of 1.6. Portfolio P has 50% invested in both A and B. Which of the following would occur if the market risk premium decreased by 1%? (Assume that the risk-free rate remains constant.)

◦

The required return on both stocks would decrease by 1%.


◦

The required return on Portfolio P would decrease by 1%.


◦

The required return on Portfolio P would decrease by less than 1%.


◦

The required return on Stock A would decrease by more than 1%, while the return on Stock B would decrease by less than 1%.

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Marked as best answer by lrhoads on Aug 7, 2023

romyclv

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Reply #1 on: Aug 7, 2023
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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lrhoads

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Reply 2 on: Aug 7, 2023
Thanks for the timely response, appreciate it

Liamb2179

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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