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Author Question: Which of the following statements is correct? (Read 7 times)

markburs

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Which of the following statements is correct?

If investors become less risk averse but rRFdoes not change, then the required rate of return on high-beta stocks will decline and the required return on low-beta stocks will increase, but the required return on an average-risk stock will not change.


An investor who holds just one stock will generally be exposed to less risk than an investor who holds a portfolio of stocks, assuming the stocks are all equally risky.


Assume that the required rate of return on the market, rM, is given and fixed at 16%. If the yield curve were upward sloping, then the Security Market Line (SML) would have a flatter slope if 50-year Treasury bonds were used as the risk-free rate than if 1-year Treasury bills were used for rRF.


The effect of a change in the market risk premium depends on the slope of the yield curve.



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Marked as best answer by markburs on Aug 7, 2023

KAyteeBee1129

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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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markburs

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


kjohnson

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Reply 3 on: Yesterday
:D TYSM

 

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