Which of the Following Statements Is Correct

question 5

Multiple Choice

Which of the following statements is correct?

• A) If a stock has a beta equal to 1.0, its required rate of return will be unaffected by changes in the market risk premium.
• B) A stock with a negative beta must in theory have a negative required rate of return.
• C) If a stock's beta doubles, its required rate of return must also double.
• D) If a stock's returns are negatively correlated with returns on most other stocks, the stock's beta will be negative.

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Definitions:

Repeating Syllables

The act of duplicating vowel-consonant combinations, an essential stage in early language acquisition and development.

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The method through which young children learn to comprehend and express language in their early years.

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A popular nursery rhyme and fingerplay that describes the adventures of a spider as it ascends, descends, and re-ascends the waterspout.