Assume that the risk-free rate, rrf, increases but the market risk premium, (rm − rrf), declines, with the net effect being that the overall required return on the market, rm, remains constant. which of the following statements is correct? a. the required return of all stocks will increase by the amount of the increase in the risk-free rate. b. the required return will decline for stocks that have a beta less than 1.0 but will increase for stocks that have a beta greater than 1.0. c. since the overall return on the market stays constant, the required return on each individual stock will also remain constant. d. the required return will increase for stocks that have a beta less than 1.0 but decline for stocks that have a beta greater than 1.0. e. the required return of all stocks will fall by the amount of the decline in the market risk premium.

1. the political environment in india has proven to be critical to company performance for both pepsico and coca-cola india. what specific aspects of the political environment have played key roles? could these effects have been anticipated prior to market entry? if not, could developments in the political arena have been handled better by each company? 2. timing of entry into the indian market brought different results for pepsico and coca-cola india. what benefits or disadvantages accrued as a result of earlier or later market entry? 3. the indian market is enormous in terms of population and geography. how have the two companies responded to the sheer scale of operations in india in terms of product policies, promotional activities, pricing policies, and distribution arrangements? 4. “global localization” (glocalization) is a policy that both companies have implemented successfully. give examples for each company from the case.

Match the steps for conducting an informational interview with the tasks in each step.

Double corporation acquired all of the common stock of simple company for