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lvnrn2012 lvnrn2012
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A year ago
Stock X has a beta of 1.8 and Stock Y has a beta of 0.6. Which of the following statements must be true, according to the CAPM?


▸

Stock X’s return during the coming year will be higher than Stock Y’s return.



▸

If expected inflation increases but the market risk premium is unchanged, Stock X will have a larger increase in its required return than will Stock Y.



▸

Stock X’s return has a higher standard deviation than Stock Y.



▸

If the market risk premium declines but the risk-free rate is unchanged, Stock X will have a larger decline in its required return than will Stock Y.

Textbook 
Financial Management: Theory and Practice

Financial Management: Theory and Practice


Edition: 4th
Authors:
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shanelljac204shanelljac204
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A year ago
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lvnrn2012 Author
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A year ago
Thanks for your help!!
Lawson1981
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This site is awesome
dearsophia21
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2 hours ago
Thank you, thank you, thank you!
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