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Author Question: Stock X has a beta of 1.8 and Stock Y has a beta of 0.6. Which of the following statements must be ... (Read 53 times)

heyheyhey

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on: Aug 7, 2023
Stock X has a beta of 1.8 and Stock Y has a beta of 0.6. Which of the following statements must be true, according to the CAPM?

◦

Stock X’s return during the coming year will be higher than Stock Y’s return.


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If expected inflation increases but the market risk premium is unchanged, Stock X will have a larger increase in its required return than will Stock Y.


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Stock X’s return has a higher standard deviation than Stock Y.


◦

If the market risk premium declines but the risk-free rate is unchanged, Stock X will have a larger decline in its required return than will Stock Y.

Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
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Marked as best answer by heyheyhey on Aug 7, 2023

Harsh06

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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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heyheyhey

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Reply 2 on: Aug 7, 2023
Excellent

deja

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

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