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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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