Version $2-$ Updated August $2022$

Question $1$

$1$ pts

An increase in the beta of a corporation indicates

and, all else being the same, results in $q,$

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.