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Which of the following statements is CORRECT? Question 2 options: 1 ) The slope of the Security Market Line is beta. 2 ) Any stock
Which of the following statements is CORRECT?
Question options:
The slope of the Security Market Line is beta.
Any stock with a negative beta must in theory have a negative required rate of return, provided rRF is positive.
If a stock's beta doubles, its required rate of return must also double.
If a stock's returns are negatively correlated with returns on most other stocks, the stock's beta will be negative.
If a stock has a beta of to its required rate of return will be unaffected by changes in the market risk premium.
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