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Unformatted text preview: The return on "the market" will increase. E) The return on "the market" will remain constant. Points Earned: 5.0/5.0 Correct Answer(s): A 16. Which of the following statements is CORRECT? A) If a stock's returns are negatively correlated with returns on most other stocks, the stock's beta will be negative. B) If a stock's beta doubles, its required rate of return must double. C) If a stock has a beta equal to 1.0, its required rate of return will be unaffected by changes in the market risk premium. D) The slope of the security market line is beta. E) A stock with a negative beta must in theory have a negative required rate of return. Points Earned: 0.0/5.0 Correct Answer(s): A...
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This note was uploaded on 11/05/2009 for the course BUS FIN 2100 taught by Professor Shmidl during the Spring '09 term at Laramie County Community College.
- Spring '09