Which of the Following Statements Is CORRECT

question 88

Multiple Choice

Which of the following statements is CORRECT?

• A) if the risk-free rate rises, then the market risk premium must also rise.
• B) if a company's beta is halved, then its required return will also be halved.
• C) if a company's beta doubles, then its required return will also double.
• D) the slope of the security market line is equal to the market risk premium, (rm - rrf).
• E) beta is measured by the slope of the security market line.

---

Definitions:

Justin Timberlake

A multifaceted American entertainer known for his contributions to music, acting, and television.

Album Release

The event or process of making a music artist's album available to the public, either physically through CDs or digitally via streaming platforms.

Entertainment Professionals

Individuals working in the entertainment industry, including actors, musicians, directors, and technicians, who contribute to creating and distributing entertainment content.

Social Media Impact

The significant influence that social media platforms have on individuals, communities, and society.