Stock a Has a Beta of 0

question 126

Multiple Choice

Stock A has a beta of 0.8,Stock B has a beta of 1.0,and Stock C has a beta of 1.2.Portfolio P has equal amounts invested in each of the three stocks.Each of the stocks has a standard deviation of 25%.The returns on the three stocks are independent of one another (i.e. ,the correlation coefficients all equal zero) .Assume that there is an increase in the market risk premium,but the risk-free rate remains unchanged.Which of the following statements is CORRECT?

• A) The required return of all stocks will remain unchanged since there was no change in their betas.
• B) The required return on Stock A will increase by less than the increase in the market risk premium,while the required return on Stock C will increase by more than the increase in the market risk premium.
• C) The required return on the average stock will remain unchanged,but the returns of riskier stocks (such as Stock C)will increase while the returns of safer stocks (such as Stock A)will decrease.
• D) The required returns on all three stocks will increase by the amount of the increase in the market risk premium.
• E) The required return on the average stock will remain unchanged,but the returns on riskier stocks (such as Stock C)will decrease while the returns on safer stocks (such as Stock A)will increase.

Comprehend the processes involved in carbon fixation and its importance for plant growth.

Differentiate between the reactants and products of photosynthesis.

Understand the role and types of photosynthetic pathways.

Identify the significance of specific wavelengths of light in photosynthesis.

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Definitions:

Productivity Rewards

Incentives or benefits given to employees as recognition for achieving high levels of work output or efficiency.

Task Performance

The execution and efficiency of completing specific tasks or duties, often measured through criteria such as speed, accuracy, and proficiency.

Multiunit Structures

Organizational arrangements where a single entity controls multiple, semi-independent units or branches that operate under a common framework but may have their own management.

Virtual Structures

Organizational designs that rely heavily on digital and telecommunication networks to connect geographically dispersed members.