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Cans 3 pts Question 14 Stock A has a beta of 0.7, whereas Stock Bhas a beta of 1.3. Portfolio P has 50% invested in

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Cans 3 pts Question 14 Stock A has a beta of 0.7, whereas Stock Bhas a beta of 1.3. Portfolio P has 50% invested in both A and B. Which of the following would occur if the market risk premium increased by 1% but the risk-free rate remained constant? The required return for Stock A would fall, but the required return for Stock B would increase. The required retum on both stocks would increase by 196. The required return on Portfolio P would increase by 1%. The required return on Stock A would increase by more than 1%, while the return on Stock B would increase by less than 1%. The required totum on Portfolio P would remain unchanged. Question 15

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