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Author Question: Which of the following statements is correct? (Assume that the risk-free rate is a constant.) (Read 17 times)

jordangardner

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on: Aug 7, 2023
Which of the following statements is correct? (Assume that the risk-free rate is a constant.)

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If the market risk premium increases by 2% then the required return will increase for stocks that have a beta greater than 1.0, but it will decrease for stocks that have a beta less than 1.0.


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The effect of a change in the market risk premium depends on the level of the risk-free rate.


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If the market risk premium increases by 2% then the required return will increase by 2% for a stock that has a beta of 1.0.


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If the market risk premium increases by 2% then the required return on all stocks will rise by 2%.

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

dadgoere765

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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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jordangardner

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

pratush dev

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Reply 3 on: Yesterday
Wow, this really help

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