An Increase in the Beta of a Corporation, All Else

question 71

Multiple Choice

An increase in the beta of a corporation, all else being the same, indicates ________.

• A) a decrease in risk, a higher required rate of return, and hence a lower share price
• B) an increase in risk, a higher required rate of return, and hence a lower share price
• C) a decrease in risk, a lower required rate of return, and hence a higher share price
• D) an increase in risk, a lower required rate of return, and hence a higher share price

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Definitions:

Local White Authorities

Refers to the predominantly white governing bodies and officials in certain areas, particularly in the United States during the segregation era, who enforced racial segregation and discrimination laws.

City Buses

Public transportation vehicles operating within urban areas, providing mass transit services for city residents and reducing the need for personal vehicle use.

Barry Goldwater

A U.S. Senator from Arizona and the Republican Party’s nominee for President in 1964, known for his conservative political positions.

1964 Election

The United States presidential election in which Lyndon B. Johnson defeated Barry Goldwater, leading to a landslide victory for the Democratic Party.