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Any Change in Its Beta Is Likely to Affect the Required

question 17

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Any change in its beta is likely to affect the required rate of return on a stock, which implies that a change in beta will likely have an impact on the stock's price, other things held constant.


Definitions:

Price Range

The spread between the lowest and highest price at which a product or service is offered in the market.

Demand Schedule

A table that shows the quantity of a good or service demanded at different price levels.

Percentage Change

A mathematical calculation that describes the degree of change over time, expressed as a fraction of the starting value.

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