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Which of the following statements is NOT CORRECT? a. Investors expect higher return by taking greater risk; here risk means market risk. b. Any change
Which of the following statements is NOT CORRECT?
a. Investors expect higher return by taking greater risk; here risk means market risk.
b. Any change in the beta is likely to affect the required rate of return on a stock, which implies that a change in beta will likely have an impact on the stock's price, other things held constant.
c. The capital Asset Pricing Model/SML dictates a positive relationship between risk and return.
d. The slope and intercept of this Security Market Line can be influenced by a manager's actions.
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