AFP
CTP · Question #689
(Topic 7) According to the Capital Asset Pricing Model, which of the following would increase the required rate of return, given a beta of 1?
The correct answer is B. An increase in the T-bill rate. See the full explanation below for the reasoning.
Question
- (Topic 7)
According to the Capital Asset Pricing Model, which of the following would increase the required rate of return, given a beta of 1?
Options
- AA decrease in the tax rate
- BAn increase in the T-bill rate
- CA decrease in the expected market return
- DAn increase in the company's stock price
How the community answered
(25 responses)- A4% (1)
- B76% (19)
- C16% (4)
- D4% (1)
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