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Business, 31.10.2019 02:31 Mofurd

Assume that the risk-free rate remains constant, but the market risk premium declines. which of the following is most likely to occur? a. the required return on a stock with beta > 1.0 will increase. b. the return on "the market" will remain constant. c. the return on "the market" will increase. d. the required return on a stock with beta < 1.0 will decline. e. the required return on a stock with beta = 1.0 will not change.

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Assume that the risk-free rate remains constant, but the market risk premium declines. which of the...
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