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Business, 16.12.2020 17:10 xxtonixwilsonxx

Assume that the risk-free rate is 6% and the market risk premium is 5%. Given this information, which of the following statements is CORRECT? a. An index fund with beta = 1.0 should have a required return less than 11%. b. An index fund with beta = 1.0 should have a required return greater than 11%. c. If a stock's beta doubles, its required return must also double. d. An index fund with beta = 1.0 should have a required return of 11%.

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Assume that the risk-free rate is 6% and the market risk premium is 5%. Given this information, whic...
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