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Question: Assume that a firm invests in an asset that reduces the firm's beta while keeping the firm's expected return the same. Holding all other factors constant, the market price of the firm's common stock should

(a) Increase.

(b) Decrease.

(d) Increase or decrease, depending on the internal rate of return of the new projects.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M92775496

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