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In recent years, both expected inflation and the market risk premium have declined. Assume that all stocks have positive betas. Which of the following is

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In recent years, both expected inflation and the market risk premium have declined. Assume that all stocks have positive betas. Which of the following is likely to have oceurred as a result of these changes? The requiced retums on all stocks thive talien by the same amount The required retures tuwe increaned for stocks with betas greater than 1.0 but thve declined for stock with betas lew tion 1.0 The average required return on the mabkt ias remained contant bet the required returm have talen for qocks that hive betas geater than 10 The requied returm on ali Mocks have falen, but the decine has been greater for stochs with Nigher betas The recouicd retums on at sods have falien, but the dedine fus been weater for stocks with bwer belas

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