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CAPM: Suppose we are at the end of a Global Financial Crisis. During the coming year, the risk free rate is expected to remain the

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CAPM: Suppose we are at the end of a Global Financial Crisis. During the coming year, the risk free rate is expected to remain the same, while the market risk premium is expected to fall. Given this forecast, which of the following statements is CORRECT? Select one: O a. The required rate of return will fall for all stocks, but it will fall more for stocks with higher betas. Ob. The required rate of return will fall for all stocks, but it will fall less for stocks with higher betas. Oc. The required rate of return for all stocks will fall by the same amount Od. The required rate of return on all stocks will remain unchanged

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