As the risk of a stock investment increases,
A) return will increase.
B) return will decrease.
C) required rate of return will decrease.
D) required rate of return will increase.
E) the beta approaches zero.

Name: As the risk of a stock investment increases, A) return will increase. B) return will decrease. C) required rate of return will decrease. D) required rate of return will increase. E) the beta approaches zero.
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Question

Quizplus · Accepted Answer

As the risk of an investment increases, the required return will increase .

As the Risk of a Stock Investment Increases