Would companys expected return double

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1. If investors' aversion to risk increased, would the risk premium on a high-beta stock increase more or less than that on a low-beta stock? Explain.

2. If a company's beta were to double, would its expected return double?

3. Is it possible to construct a portfolio of stocks which has an expected return equal to the risk-free rate?

Reference no: EM131375710

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