Which of the Following Statements Is Most Correct

question 51

Multiple Choice

Which of the following statements is most correct?

• A) We would observe a downward shift in the required returns of all stocks if investors believed that there would be deflation in the economy.
• B) If investors became more risk averse, then the new security market line would have a steeper slope.
• C) If the beta of a company doubles, then the required rate of return will also double.
• D) Both statements a and b are correct.
• E) All of the statements above are correct.