Stock LB has a beta of 0.5 and Stock HB has a beta of 1.5. The market is in equilibrium, with required returns equaling expected returns. Which of the following statements is CORRECT? a. If both expected inflation and the market risk premium (rM β rRF) increase, the required return on Stock HB will increase by more than that on Stock LB. b. If expected inflation remains constant but the market risk premium (rM β rRF) declines, the required return of Stock LB will decline but the required return of Stock HB will increase. c. If expected inflation remains constant but the market risk premium (rM β rRF) declines, the required return of Stock HB will decline but the required return of Stock LB will increase. d. If both expected inflation and the market risk premium (rM β rRF) increase, the required returns of both stocks will increase by the same amount. e. Since the market is in equilibrium, the required returns of the two stocks should be the same.
Answers: 2
Business, 21.06.2019 14:50
Which of the following is the most direct cause of cost-push inflation? a. rising production costs. b. reductions in wages. c. greater scarcity of natural resources. d. increasing supply of goods and services. 2b2t
Answers: 3
Business, 21.06.2019 22:30
What two elements normally must exist before a person can be held liable for a crime
Answers: 1
Business, 22.06.2019 20:00
Which of the following statements is true of the balanced-scorecard? a. it is a more or less a one-dimensional metric of measuring competitive advantages of a firm. b. it is one of the traditional approaches of measuring firm performance. c. its primary focus is to base a firm's strategic goals entirely on external performance dimensions. d. it attempts to provide a holistic perspective on firm performance.
Answers: 1
Business, 23.06.2019 01:00
What is the average price for the cordless telephones (to 2 decimals)? $ b. what is the average talk time for the cordless telephones (to 3 decimals)? hours c. what percentage of the cordless telephones have a voice quality of excellent? % d. what percentage of the cordless telephones have a handset on the base?
Answers: 3
Stock LB has a beta of 0.5 and Stock HB has a beta of 1.5. The market is in equilibrium, with requir...
Mathematics, 19.10.2021 18:50
Mathematics, 19.10.2021 18:50
Spanish, 19.10.2021 18:50
Social Studies, 19.10.2021 18:50
Mathematics, 19.10.2021 18:50
History, 19.10.2021 18:50
English, 19.10.2021 18:50
Mathematics, 19.10.2021 18:50
Mathematics, 19.10.2021 18:50
Physics, 19.10.2021 18:50
English, 19.10.2021 18:50