Which of the Following Statements Is Correct

question 77

Multiple Choice

Which of the following statements is correct?

• A)If the risk-free rate rises, then the market risk premium will also rise.
• B)If a company's beta is halved, then its required return will also be halved.
• C)If a company's beta doubles, then its required return will also double.
• D)The slope of the security market line is equal to the market risk premium, (r_M - r_RF).

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