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Which of the Following Statements Is CORRECT

Question 56

Multiple Choice

Which of the following statements is CORRECT?


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

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