Assume That the Risk-Free Rate Is 5

question 63

Multiple Choice

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

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

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Definitions:

Inactive Neuron

A neuron that is not currently active or firing, indicating a lack of transmission of neural signals at a given moment.

Electrical Charge

Electrical charge is a fundamental property of matter that causes it to experience a force when placed in an electromagnetic field.

Resting State

A condition or phase in which the brain is not engaged in focused mental activity and shows a default pattern of connectivity.

Spinal Cord

A long, thin, tubular bundle of nervous tissue and support cells that extends from the brain, vital for transmitting nerve signals between the brain and the body.