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:

Marginal Utility

The additional satisfaction or utility gained by consuming an additional unit of a good or service.

Income Elasticity

It quantifies the sensitivity of the quantity demanded for a good to a change in consumer incomes, highlighting how demand varies as income levels shift.

Price Elasticity

A measure of the responsiveness of the quantity demanded or supplied of a good to a change in its price.

Supply

The total quantity of a product or service that is available for purchase at a given price and time.