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Which of the Following Is Correct Regarding a Change in Beta

Question 48

Multiple Choice

Which of the following is correct regarding a change in beta and its potential impact on a stock's price?


A) Any change in beta is likely to affect the required rate of return on a stock, which implies that a change in beta will likely have an impact on the stock's price.
B) Any change in beta is not likely to affect the required rate of return on a stock. However, which implies that a change in beta will likely have an impact on the stock's price.
C) Any change in beta is likely to affect the required rate of return on a stock, which implies that a change in beta will likely not have an impact on the stock's price.
D) Any change in beta is not likely to affect the required rate of return on a stock, which implies that a change in beta will not likely have an impact on the stock's price.

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