(Answered)-1. If a stock has a higher Beta, what impact will that have on - (2025 Updated Original AI-Free Solution

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Question

1. If a stock has a higher Beta, what impact will that have on its expected return?

a. Expected return will be higher due to the risk/return tradeoff of a riskier stock

b.?Expected return will be higher due to the increase in market risk premium
c. Expected return will be lower due to the risk/return tradeoff of a riskier stock
d.?Expected?return?will?be?lower?due?to?the?larger??discount?factor
1. The main importance of the WACC is:
a. To help calculate interest expense??????????????????
b. To forecast the effective tax rate
c.?To evaluate investment opportunities
d. To evaluate profit margin