Assume That the Risk-Free Rate Is 5

question 55

Multiple Choice

Assume that the risk-free rate is 5%.Which of the following statements is CORRECT?

• A) If a stock's beta doubled, its required return under the CAPM would also double.
• B) If a stock's beta doubled, its required return under the CAPM would more than double.
• C) If a stock's beta were 1.0, its required return under the CAPM would be 5%.
• D) If a stock's beta were less than 1.0, its required return under the CAPM would be less than 5%.
• E) If a stock has a negative beta, its required return under the CAPM would be less than 5%.

---

Definitions:

Postsynaptic Membrane

Membrane on the transmitter, or input, side of a synapse.

Enriched Environment

An enriched environment refers to settings that provide increased sensory, cognitive, and physical stimulation to promote improved neurological and behavioral outcomes.

Neurons

Specialized cells transmitting nerve impulses; the basic building blocks of the nervous system.

Astrocytes

Star-shaped glial cells in the brain and spinal cord, crucial for the repair and scarring process of the central nervous system.