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

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Assume that the risk-free rate remains constant, but the market risk premium declines. Which of the following is most likely to occur? a. The return on "the market" will increase. b. The required return on a stock with beta >1.0 will increase. c. The required return on a stock with beta =1.0 will not thange. d. The return on "the market" will remain constant. e. The required return on a stock with a positive beta

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