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World United stock currently plots on the security market line (SML) and has a beta of 1.14. Which one of the following will increase that
- World United stock currently plots on the security market line (SML) and has a beta of 1.14. Which one of the following will increase that stock's rate of return without affecting the risk level of the stock, all else constant?
- An increase in the risk-free rate
- Decrease in the security's beta
- Overpricing of the stock in the marketplace
- Increase in the market risk premium
- Decrease in the expected return on the market
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