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t.25 QUESTION 25 What would happen to an asset's required return if... (3) Reminder: Rs-Ref+B (Rm-Ref)-Raf+B(MRP) The beta of a stock falls The risk-free rate

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QUESTION 25 What would happen to an asset's required return if... (3) Reminder: Rs-Ref+B (Rm-Ref)-Raf+B(MRP) The beta of a stock falls The risk-free rate decreases Investors become less risk adverse (aka they are MORE okay with risk)

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