As a company's beta rises, the required return on the stock should fall, all other things being equal.

Name: As a company's beta rises, the required return on the stock should fall, all other things being equal.
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As a company's beta rises, the perceived riskiness of the stock increases, which leads to a higher required return to compensate investors for the increased risk. Therefore, the required return on the stock should actually rise as beta increases, and not fall.

As a Company's Beta Rises, the Required Return on the Stock