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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? The required return

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

pzl explain why,tks

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