Any change in its beta is likely to affect the required rate of return on a stock, which implies that a change in beta will likely have an impact on the stock's price, other things held constant.

Question

Quizplus · Accepted Answer

A change in beta will affect the required rate of return on a stock according to the Capital Asset Pricing Model (CAPM), which in turn will affect the stock's price.

Any Change in Its Beta Is Likely to Affect the Required