Increase the cost of equity capital according to capm

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Reference no: EM131328739

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

Reference no: EM131328739

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