Any Change in Its Beta Is Likely to Affect the Required

question 17

True/False

Any change in its 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.

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Definitions:

Conjunct

An element of a conjunction in logic, representing a compound statement formed with the word "and" that is true only when both components are true.

Conjunction

A compound statement formed by combining two statements with the word "and".

Tautology

A statement that is inherently true in every possible interpretation due to its logical structure.

Biconditional

A logical statement in which both parts are mutually dependent: if one is true, the other must be true, and vice versa.