Which of the Following Statements Is CORRECT

question 128

Multiple Choice

Which of the following statements is CORRECT?

• A) If a stock has a beta of to 1.0,its required rate of return will be unaffected by changes in the market risk premium.
• B) The slope of the Security Market Line is beta.
• C) Any stock with a negative beta must in theory have a negative required rate of return,provided rRF is positive.
• D) If a stock's beta doubles,its required rate of return must also double.
• E) 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:

Food Distributor

An entity that acts as an intermediary between food manufacturers or producers and retail establishments or food service operators, facilitating the distribution of food products.

Target Market

A specific group of potential customers identified as the intended audience for a product or service, based on shared characteristics or needs.

Household Income

The combined gross income of all members of a household, contributing to its total earning capacity.

Adults Work

Employment activities or tasks performed by individuals who have reached the legal working age, contributing to their livelihood and economy.