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Author Question: Which of the following statements is correct? (Read 6 times)

lingual

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Question 1

Which of the following statements is correct?

Higher beta stocks have lower required returns.


The slope of the security market line is equal to the market risk premium.


A stock’s beta indicates its unsystematic risk.


Company-specific risk cannot be completely diversified away.



Question 2

Which of the following statements is correct?

The slope of the security market line is equal to the market risk premium, (rM– rRF).


If a company’s beta is halved, then its required return will also be halved.


If the risk-free rate decreases, then the market risk premium will also decrease.


Market risk premium is measured by the intercept of the security market line.



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Marked as best answer by lingual on Aug 7, 2023

koung719

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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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Only 39% of students answer this correctly




lingual

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


ghepp

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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