Which of the Following Statements Is CORRECT

question 131

Multiple Choice

Which of the following statements is CORRECT?

• A) Beta is measured by the slope of the security market line.
• B) If the risk-free rate rises, then the market risk premium must also rise.
• C) If a company's beta is halved, then its required return will also be halved.
• D) If a company's beta doubles, then its required return will also double.
• E) The slope of the security market line is equal to the market risk premium, (rM − rRF).

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Definitions:

Attitudinal

relates to attitudes or mannerisms, often referring to the psychological aspect that determines how people perceive and interact with their environment.

Secondary Data Collection

The process of gathering existing data that was collected by someone else for a purpose other than the current research need.

Database Search

The process of querying a database to retrieve specific information or records based on certain criteria.

Secondary Research

Secondary Research involves the analysis and interpretation of existing information gathered from previously conducted studies and publicly available data, rather than original data collection.