Which of the Following Statements Is CORRECTσ

question 49

Multiple Choice

Which of the following statements is CORRECTσ

• A) the slope of the security market line is beta.
• B) any stock with a negative beta must in theory have a negative required rate of return, provided rrf is positive.
• C) if a stock's beta doubles, its required rate of return must also double.
• D) if a stock's returns are negatively correlated with returns on most other stocks, the stock's beta will be negative.
• E) if a stock has a beta of to 1.0, its required rate of return will be unaffected by changes in the market risk premium.

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Definitions:

mRNA

Messenger RNA, a single-stranded RNA molecule that carries genetic information from DNA to the ribosome, where it directs protein synthesis.

Genomic Library

A collection of DNA fragments that represents the entire genome of an organism.

DNA Fragments

Pieces of DNA that are the result of breaking the DNA molecule into smaller segments through various methods.

Plasmids

Small, circular, double-stranded DNA molecules found in bacteria and sometimes in eukaryotic organisms, separate from chromosomal DNA and capable of independent replication.