An increase in nondiversifiable risk
A) would have no effect on the beta and would, therefore, cause no change in the required return.
B) would cause an increase in the beta and would increase the required return.
C) would cause an increase in the beta and would lower the required return.
D) would cause a decrease in the beta and would, therefore, lower the required rate of return.
Question 2
The cost of trade credit varies directly with the size of the cash discount and inversely with the
length of time between the end of the discount period and the final due date.
Indicate whether the statement is true or false
Increased risk of trisomy with maternal age.
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