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blinding37

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Assume that investors have recently become less risk averse, so the market risk premium has decreased. Also, assume that the risk-free rate and expected inflation have not changed. Which of the following is most likely to occur?

The required rate of return will increase for stocks whose betas are less than 1.0.


The required rate of return for an average stock will decrease by an amount equal to the decrease in the market risk premium.


The required rate of return on a riskless bond will increase.


The required rate of return for each individual stock in the market will decrease by an amount greater than the decrease in the market risk premium.



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Marked as best answer by blinding37 on Aug 7, 2023

bleep bloop

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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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blinding37

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Reply 2 on: Aug 7, 2023
Great answer, keep it coming :)


Dominic

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Reply 3 on: Yesterday
Wow, this really help

 

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