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If you assume beta is greater than 1, then which of these will increase the cost of equity capital according to CAPM? I. Increase in

If you assume beta is greater than 1, then which of these will increase the cost of equity capital according to CAPM?

I. Increase in the risk-free rate

II. Decrease in the risk-free rate

III. Increase in the market rate of return

IV. Decrease in the market rate of return

I and III only

II and IV only

II and III only

I and IV only

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