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, (rM - rRF) .
Correct Answer:

Verified
Correct Answer:
Verified
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