Stock a Has a Beta of 0

question 122

Multiple Choice

Stock A has a beta of 0.7,whereas Stock B has a beta of 1.3.Portfolio P has 50% invested in both A and B.Which of the following would occur if the market risk premium increased by 1% but the risk-free rate remained constant?

• A) The required return on Portfolio P would increase by 1%.
• B) The required return on both stocks would increase by 1%.
• C) The required return on Portfolio P would remain unchanged.
• D) The required return on Stock A would increase by more than 1%,while the return on Stock B would increase by less than 1%.
• E) The required return for Stock A would fall,but the required return for Stock B would increase.

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Definitions:

24-Hour Rolling Claims

Claims process in healthcare that involves submitting insurance claims within 24 hours of a patient's visit to ensure timely filing and potentially faster reimbursement.

UB-04 Form

A standard claim form used by hospitals, nursing facilities, and other inpatient providers to bill medical insurance plans, including Medicare and Medicaid.

CMS-1450

A standard form used in the United States for billing Medicare and Medicaid services, also known as the UB-04 form.

Clearinghouse

A private or public company that often serves as the middleman between physicians and billing groups, payers, and other health care partners for the transmission and translation of electronic claims information into the specific format required by payers.