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6. A security has a beta of 1.20. Is this security more or less risky than the market? Explain Assess the impact on the required

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6. A security has a beta of 1.20. 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. Review Only 5 Click the icon to see the worked Solution. A security has a beta of 1.20. Is this security more or less risky than the market? (Select the best choice below.) A. The security and the market are equally risky because the market has a beta of 1 B. The security is more risky than the market because the market has a beta of 1 C. The security and the market are equally risky because the market has the same beta of 120 D. The security is less risky than the market because the market has a beta of 1. a. If the market return increases by 15%, the expected return of the security with a beta of 1.20 will: (Select the best choice below) A. increase by more than 15%, B. increase by less than 15% C. remain unchanged. D. decrease by less than 8%. E. decrease by more than 8%. b. If the market return decreases by 8%, the expected return of the security with a beta of 1.20 will: (Select the best choice below.) A. increase by more than 15% B. increase by less than 15%. C. remain unchanged. D. decrease by less than 8% E. decrease by more than 8% c. If the market return remains unchanged the expected return of the security with a beta of 1.20 will: (Select the best choice below.) O A. Increase by more than 15% B. increase by less than 15%. C. remain unchanged D. decrease by less than 8% E. decrease by more than 8% o

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