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Which of the following statements is CORRECT? a. The slope of the Security Market Line is beta. b. Any stock with a negative beta must
Which of the following statements is CORRECT?
a. | The slope of the Security Market Line is beta. | |
b. | Any stock with a negative beta must in theory have a negative required rate of return, provided rRF is positive. | |
c. | If a stock's beta doubles, its required rate of return must also double. | |
d. | If a stock's returns are negatively correlated with returns on most other stocks, the stock's beta will be negative. | |
e. | If a stock has a beta of to 1.0, its required rate of return will be unaffected by changes in the market risk premium. |
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