Which of the following will increase the cost of equity for a firm with a beta of 1.1?
I.Decrease in the security's beta
II.Decrease in the market risk premium
III.Decrease in the risk-free rate
IV.Increase in the risk-free rate
A) II only
B) III only
C) I and II only
D) II and III only
E) I and IV only
Correct Answer:
Verified
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