Suppose that a company has a major change in its investment


Suppose that a company has a major change in its investment policy and as a consequence, the beta of its stocks is lower than before but the growth rate is also lower than before. Assuming that other factors remain constant, these two changes would offset each other and thus the stock price would not be affected." True or false?

Select one:

a. True

b. False

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Finance Basics: Suppose that a company has a major change in its investment
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