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Assume that the risk-free rate remains constant, but the market risk premium increases. Which of the following is most likely to occur? The required return

Assume that the risk-free rate remains constant, but the market risk premium increases. Which of the following is most likely to occur?

The required return on a stock with beta = 0 will not change.

The required return on a stock with beta > 1.0 will increase.

The return on "the market" will remain increase.

The required return on a stock with a negative beta > 0 will increase.

All of them will likely occur.

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