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Author Question: Stock A has a beta of 0.9 and Stock B has a beta of 1.1. 50% of Portfolio P is invested in Stock A ... (Read 39 times)

C0DxHalo

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on: Aug 7, 2023
Stock A has a beta of 0.9 and Stock B has a beta of 1.1. 50% of Portfolio P is invested in Stock A and 50% is  invested in Stock B. If the market risk premium (rM– rRF) were to decrease but the risk-free rate (rRF) remained constant, which of the following would occur?

◦

The required return on Portfolio P will remain unchanged since the beta of Portfolio P is 1.


◦

The required return will decrease by the same amount for both Stock A and Stock B.


◦

The required return will increase for Stock A but will decrease for Stock B.


◦

The required return will decrease for both stocks but the decrease will be greater for Stock B than for Stock A.

Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
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Marked as best answer by C0DxHalo on Aug 7, 2023

iamkarenvv

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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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C0DxHalo

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

gcook

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Reply 3 on: Yesterday
Gracias!

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