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

Question

An increase in the beta of a corporation indicates ________, and, all else being the same, results in ________. Answer a decrease in risk; a higher required rate of return and hence a lower share price an increase in risk; a higher required rate of return and hence a lower share price a decrease in risk; a lower required rate of return and hence a higher share price an increase in risk; a lower required rate of return and hence a higher share price An increase in the beta of a corporation indicates ________, and, all else being the same, results in ________. a decrease in risk; a higher required rate of return and hence a lower share price an increase in risk; a higher required rate of return and hence a lower share price a decrease in risk; a lower required rate of return and hence a higher share price an increase in risk; a lower required rate of return and hence a higher share price a decrease in risk; a higher required rate of return and hence a lower share price an increase in risk; a higher required rate of return and hence a lower share price a decrease in risk; a lower required rate of return and hence a higher share price an increase in risk; a lower required rate of return and hence a higher share price

Explanation / Answer

a decrease in risk; a higher required rate of return and hence a lower share price

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