Which of the Following Statements Concerning the Required Rate of Return

question 81

Multiple Choice

Which of the following statements concerning the required rate of return on stocks is true?

• A) The higher an investor's required rate of return, the higher the value of the stock.
• B) If risk is reduced, the required return will decrease because more investors are risk-averse.
• C) The required return on preferred stock is generally higher than the required return on common stock.
• D) The higher the risk, the higher the required return, other things being equal.

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