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4 pts The reward-to-risk ratio for stock A is less than the reward-to-risk ratio of stock B. Stock A has a beta of 0.82 and

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4 pts The reward-to-risk ratio for stock A is less than the reward-to-risk ratio of stock B. Stock A has a beta of 0.82 and stock B has a beta of 1.29. This information implies that: Either stock A is overpriced or stock B is underpriced or both. Stock A is less risky than stock B and both stocks are fairly priced. Stock A is riskier than stock B and both stocks are fairly priced. Either stock A is underpriced or stock B is overpriced or both Both stock A and stock B are correctly priced since stock Ais riskier than stock B

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