If you assume beta is greater than 1 then which of these


If you assume beta is greater than 1, then which of these will increase the cost of equity capital according to CAPM?

I. Increase in the risk-free rate

II. Decrease in the risk-free rate

III. Increase in the market rate of return

IV. Decrease in the market rate of return

Answer Options:

A. III Only

B. I and III Only

C. I and IV Only

D. II and IV Only

E. II and III Only

Request for Solution File

Ask an Expert for Answer!!
Financial Management: If you assume beta is greater than 1 then which of these
Reference No:- TGS01731377

Expected delivery within 24 Hours