A security has a beta of 1.2. Is this security more or less risky than the market?

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A security has a beta of 1.2. Is this security more or less risky than the market? Explain. Assess the impact on the required return of this security in each of the following cases.
a. The market return increases by 15%.
b. The market return decreases by 8%.
c. The market return remains unchanged.
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Fundamentals of Investing

ISBN: 978-0133075359

12th edition

Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk

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