How required rate of return on a stock be affected

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CAPM Relationships

a. When using the CAPM, how would the required rate of return on a stock be affected if the risk-free rate were lower?

b. When using the CAPM, how would the required rate of return on a stock be affected if the market return were lower?

c. When using the CAPM, how would the required rate of return on a stock be affected if the beta were higher?

Reference no: EM131230582

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