An Increase in the Beta of a Corporation Indicates ____________

Multiple Choice

An increase in the beta of a corporation indicates ____________, and, all else being the same, results in___________.

A) an increase in risk; a higher required rate of return and hence a lower share price.
B) an increase in risk; a lower required rate of return and hence a higher share price.
C) a decrease in risk; a lower required rate of return and hence a higher share price.
D) a decrease in risk; a higher required rate of return and hence a lower share price.