Stock a Has a Beta of 0

question 39

Multiple Choice

Stock A has a beta of 0.8 and Stock B has a beta of 1.2.Fifty percent of Portfolio P is invested in Stock A and 50% is invested in Stock B.If the market risk premium (r_M - r_RF) were to increase but the risk-free rate (r_RF) remained constant,which of the following would occur?

• A)The required return will increase for both stocks but the increase will be greater for Stock B than for Stock A.
• B)The required return will decrease by the same amount for both Stock A and Stock B.
• C)The required return will increase for Stock A but will decrease for Stock B.
• D)The required return on Portfolio P will remain unchanged.

Recognize the significance of land and agriculture, particularly tobacco cultivation, in the Chesapeake's development and conflicts with Native Americans.

Grasp the differences in migration patterns, societal organization, and labor systems between the Chesapeake and New England colonies.

Analyze the impact of religious ideas on colonial interactions with Native Americans, focusing on conversion efforts and conflicts.

Discern the differences in family life, material culture, and economic practices between Chesapeake and New England families in the seventeenth century.

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