Which of the Following Statements Is Correct

question 77

Multiple Choice

Which of the following statements is correct?

• A)If the risk-free rate rises, then the market risk premium will also rise.
• B)If a company's beta is halved, then its required return will also be halved.
• C)If a company's beta doubles, then its required return will also double.
• D)The slope of the security market line is equal to the market risk premium, (r_M - r_RF).

---

Definitions:

Insulin

A hormone produced by the pancreas that regulates blood sugar levels by facilitating the uptake of glucose into tissues.

Insulin

a hormone produced by the pancreas that regulates the level of glucose in the blood, essential for maintaining healthy blood sugar levels.

Eating Hunger

The physiological need or desire to consume food, triggered by the body's energy requirements.

Lateral Hypothalamus

An area of the brain involved in many functions, including hunger, thirst, and the body's response to overheating or overcooling.