Question: If the market risk premium increases, the required return k on a stock will: A. increase by beta times the market risk premium. B. not

If the market risk premium increases, the required return k on a stock will:
  • A. increase by beta times the market risk premium.
  • B. not be affected.
  • C. go down.
  • D. decrease by beta times the market risk premium.
  • E. increase by beta minus the market risk premium.

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