Multiple Choice
If you assume beta is greater than 1,then which of these will increase the cost of equity capital according to CAPM? I.Increase in the risk-free rate
II) Decrease in the risk-free rate
III) Increase in the market rate of return
IV) Decrease in the market rate of return
A) III only
B) I and III only
C) I and IV only
D) II and IV only
E) II and III only
Correct Answer:

Verified
Correct Answer:
Verified
Q63: A stock portfolio consists of 27 percent
Q64: ABC stock has a beta that is
Q65: A portfolio is invested 40 percent each
Q66: Which one of these is represented by
Q67: Which one of these statements is true?<br>A)The
Q69: Which one of these statements related to
Q70: JJ's Ice Cream has 1,800 bonds outstanding
Q71: Finally There! has 1,500 bonds outstanding with
Q72: Golden Eagle has 1,250 bonds outstanding with
Q73: The asset beta is defined as the