Using the Capital Asset Pricing Model (CAPM), a decrease in the security's beta will increase the expected rate of return on an individual security. Assume that the security's beta, the risk-free rate of return, and the market rate of return are all positive.

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According to the Capital Asset Pricing Model (CAPM), the expected rate of return on a security is directly proportional to its beta. A decrease in the security's beta would lead to a decrease in its expected rate of return, assuming the risk-free rate and the market rate of return remain constant.

Using the Capital Asset Pricing Model (CAPM), a Decrease in the Security's