Which of the Following Statements Is CORRECT

question 11

Multiple Choice

Which of the following statements is CORRECT?

• 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:

Governments

Organizational entities responsible for overseeing the functioning and governance of a nation, state, or community.

Nonroutine Action

Actions that are not typical or customary, often requiring unique or creative approaches to solve problems or address situations.

Values and Norms

Sets of shared beliefs and guidelines in a society that dictate what is considered acceptable and unacceptable behavior.

Organized

Structured or arranged systematically, often referring to activities or groups with clear rules or objectives.