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) .
Correct Answer:

Verified
Correct Answer:
Verified
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