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5) Stock A has a beta of 1.2 and Stock B has a beta of 0.6. Which of the following statements is true? a. Stock

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5) Stock A has a beta of 1.2 and Stock B has a beta of 0.6. Which of the following statements is true? a. Stock A has more unsystematic risk than Stock B b. Stock B has more systematic risk than Stock A. c. If the risk-free rate and the market risk premium are both positive, Stock A has a higher expected return than Stock B according to the CAPM. d. Both a and b are true e. Both b and c are true

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