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Based on the capital asset pricing model, which one of the following will increase the cost of equity, all else constant? A) a decrease in
Based on the capital asset pricing model, which one of the following will increase the cost of equity, all else constant?
A) a decrease in the risk-free rate of return given a security beta of .7
B) an increase in the risk-free rate given a security beta of .8
C) a decrease in the securitys beta
D) a decrease in the market rate of return given a security beta of 1.4
E) a decrease in the market rate of return given a security beta of .8
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