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Assume a firm has a beta of 1.2. All else held constant, the cost of equity for this firm will increase if the: beta decreases.

Assume a firm has a beta of 1.2. All else held constant, the cost of equity for this firm will increase if the: beta decreases. market risk premium decreases. risk-free rate decreases. either the risk-free rate or the market rate of return decreases. market rate of return decreases.

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