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Which of the following statements is CORRECT? a. Beta is measured by the slope of the security market line. b. If the risk-free rate rises,
Which of the following statements is CORRECT?
a. Beta is measured by the slope of the security market line.
b. If the risk-free rate rises, then the market risk premium must also rise.
c. If a company's beta is halved, then its required return will also be halved.
d. If a company's beta doubles, then its required return will also double.
e. The slope of the security market line is equal to the market risk premium,
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