Decreases in the Risk-Free Rate Will Reduce

question 61

Multiple Choice

Decreases in the risk-free rate will reduce:

• A)the market risk premium.
• B)the stock's risk premium.
• C)the stock's Beta.
• D)the stock's expected return.

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Definitions:

Ethical Intensity

Refers to the degree of importance or significance given to an ethical issue, determined by its potential impact on stakeholders and the urgency of addressing it.

Factors Influencing

Elements or conditions that affect the outcome of a process or the behavior of individuals.

Behaviors

Observable actions or reactions of individuals or groups in response to external or internal stimuli.

Stakeholder Responsibility

The obligation of an organization to consider the interests and wellbeing of all its stakeholders in its decisions and actions.