A decrease in the cost of stock (rs) decreases the price of stock

Which of the following is consistent with taking more risk for a risk averse investor?

Risk may be defined as a chance of an unfavorable event or that an actual return could deviate from an expected return

Marginal investors determine the selling price of a security for investors buying and selling.

Information that is more readily available and relevant about any prospect of a company is related to investors making buy or sell decisions based on that information.

A higher beta is consistent with a lower rs

If a stock is in equilibrium there is no opportunity to capture a higher expected return relative to the required return established by the level of risk. 

Most investors can readily “beat the market” by finding stocks that are not in equilibrium where an opportunity exists to find excessive returns over time.

Beta represents market risk

Capital gain yield is expressed by _________