places. If the market risk premium increased to 9%, what would happen to the stock's required rate of return? Assume that the risk-fre- unchanged. Do not round intermediate calculations. Round your answer to two decimal places. I. If the stock's beta is equal to 1.0, then the change in required rate of return will be less than the change in the market risk p II. If the stock's beta is greater than 1.0, then the change in required rate of return will be greater than the change in the marke II. If the stock's beta is less than 1.0, then the change in required rate of return will be greater than the change in the market ris IV. If the stock's beta is greater than 1.0, then the change in required rate of return will be less than the change in the market ris V. If the stock's beta is equal to 1.0, then the change in required rate of return will be greater than the change in the market risl -Select- v
places. If the market risk premium increased to 9%, what would happen to the stock's required rate of return? Assume that the risk-fre- unchanged. Do not round intermediate calculations. Round your answer to two decimal places. I. If the stock's beta is equal to 1.0, then the change in required rate of return will be less than the change in the market risk p II. If the stock's beta is greater than 1.0, then the change in required rate of return will be greater than the change in the marke II. If the stock's beta is less than 1.0, then the change in required rate of return will be greater than the change in the market ris IV. If the stock's beta is greater than 1.0, then the change in required rate of return will be less than the change in the market ris V. If the stock's beta is equal to 1.0, then the change in required rate of return will be greater than the change in the market risl -Select- v
Chapter8: Risk And Rates Of Return
Section: Chapter Questions
Problem 18PROB
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