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

---

Definitions:

Operator

Part of an operon; a DNA binding site for a repressor.

Prokaryotic DNA

The genetic material found in prokaryotes (bacteria and archaea) that is typically circular and located in the cytoplasm.

Silencer

A regulatory DNA sequence that can bind repressor proteins to inhibit the expression of a gene.

Insulator

A material that resists the flow of electric charge, used in various applications to protect against electric shock or retain heat.