An Increase in the Beta of a Corporation Indicates ________

Multiple Choice

An increase in the beta of a corporation indicates ________, and, all else being the same, results in ________.

A) a decrease in risk; a higher required rate of return and hence a lower share price
B) an increase in risk; a higher required rate of return and hence a lower share price
C) a decrease in risk; a lower required rate of return and hence a higher share price
D) an increase in risk; a lower required rate of return and hence a higher share price