Which of the Following Statements Is CORRECT

question 87

Multiple Choice

Which of the following statements is CORRECT?

• A) The slope of the Security Market Line is beta.
• B) Any stock with a negative beta must in theory have a negative required rate of return, provided r_RF is positive.
• 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.
• E) 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.

---

Definitions:

Wooden Packing Boxes

Wooden packing boxes are durable containers made of wood, used for storing and transporting goods safely and securely.

Job Training

The process of teaching employees the knowledge and skills necessary to perform their job duties effectively.

Ethical Challenges

Issues and dilemmas arising from the need to make choices about right and wrong behavior in business practices.

Social Challenges

Issues that affect individuals or communities, stemming from societal norms, structures, or problems, and often requiring collective efforts to address.