Table 8.3 Consider the Following Two Securities X and Y

question 84

Multiple Choice

Table 8.3
Consider the following two securities X and Y.
-________ in the beta coefficient normally causes ________ in the required return and therefore ________ in the price of the stock, all else remaining the same.

• A) An increase; an increase; an increase
• B) An increase; a decrease; an increase
• C) An increase; an increase; a decrease
• D) A decrease; a decrease; a decrease

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Definitions:

Non-directional

Pertaining to hypothesis testing, a hypothesis that does not predict the direction of the difference or relationship but merely asserts that a difference or relationship exists.

Alternative Hypothesis

A hypothesis that contradicts the null hypothesis, asserting that there is a statistically significant relationship between variables.

Non-directional

Refers to a type of hypothesis that does not predict the direction of the difference or relationship between variables.

Alternative Hypothesis

In hypothesis testing, the hypothesis that contradicts the null hypothesis, suggesting some effect or difference exists.